Client has a cash basis VAT scheme.
Client has a customer that went into liqiuidation over 1 year a go owing them around £120k (gross).
Client has been told that he can apply to reclaim the VAT element of this from HMRC.
Questoin: Am I correct in my contention that HMRC will not repay VAT when the client has not actually paid it to HMRC in the first instance?
Even the basic guidance tells me I am correct but the client is insistent:
Any comments always appreciated.