COVID-19 – VAT Relief on Bad Debts

At a time when cash flow is key, don’t forget to claim VAT relief on bad debts when preparing your VAT return.  To claim relief, a debt must have remained unpaid for a period of six months from the later of the date payment was due or the date of the supply. If all or part of the debt is subsequently recovered, you must repay the appropriate amount of VAT to HMRC on your next VAT return.

Full details of the conditions that must be met and the method for claiming relief can be found in HMRC Notice 700/18 https://www.gov.uk/guidance/relief-from-vat-on-bad-debts-notice-70018

Disclaimer - All information in this post was correct at time of writing.