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To be deductible an impairment loss (also known as a bad debt) must be incurred in the course of the business. This means that an irrecoverable trading debt will be deductible, whereas an irrecoverable...
The regime is, in practice, fairly straightforward as certain debits (expenses), credits (income) and gains recognised in the company accounts for qualifying intangible assets are also allowed...
Where a company prepares its accounts in accordance with an acceptable accounting method (¶7835), it is required to assess its financial assets at each balance sheet date and to see whether...
VAT is usually accounted for when a supply is made. If the debt in respect of a supply is not paid, the supplier may claim bad debt relief equivalent to the output tax paid to HMRC, provided...
Where the debts of a business are collected by an agent, VAT must be accounted for in the period in which the agent receives the payment. VAT is due on the full amount received by the agent from...
At the end of the VAT period the retailer should review the selling prices by taking into account: - price changes (particularly in respect of perishable goods which must be sold by a certain...
In addition to the VAT account, all traders must maintain the following records: - general business and accounting records; - copies of all VAT invoices issued and received; - a record of any...
Your firm’s financial year ends soon and while the accounts will show a profit you’re expecting them to include significant bad debts. How long will you have to wait to claim a tax deduction...
Your client’s company accounts show a number of small bad debts. Individually these don’t merit chasing and the client is looking to write them off. Do they need to do anything particular...
If a customer fails to pay your invoice you can, after six months, claim a refund of the corresponding VAT you accounted for to HMRC. But if you use the flat rate scheme a further adjustment...