Back to basics ................

Back to basics ................

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Can someone please remind me whether VAT bad debt relief can be claimed on specific bad debt provisons as oppose to write-offs ??

If a specific bad debt provison is made does the net value go to P&L with VAT reclaimed or does the gross value go to P&L with only the VAT being adjusted and claimed once the debt is written-off.

Many thanks.

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Scalloway Castle
By scalloway
14th Dec 2012 22:58

Write Off

You can only claim back the VAT when you have written the debt off as bad.

http://www.hmrc.gov.uk/vat/managing/reclaiming/bad-debts.htm

 

 

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