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    Corporation tax - Chargeable profits - Specific income and expense items - Expense items - Impairment losses - 3540

    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...

    When should you deduct bad debts?

    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...

    Maximising corporation tax relief for bad debts

    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...

    VAT flat rate scheme users missing out on bad debt relief

    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...

    Coping with bad payers tax efficiently

    Your latest accounts don’t make happy reading - customers are paying more slowly and some not at all. At what point can you obtain tax relief for overdue debts?

    Timing bad debt relief is important

    Your company’s last financial year showed a large number of small bad debts. The amounts involved don’t warrant chasing the non-payers. Will HMRC allow a tax deduction for these or are further...

    Bad debt equals good tax deduction

    In these difficult times bad debts are a big problem. If you don’t keep a watchful eye on them your company might be paying Corporation Tax on income it will never receive. How can you formulate...

    The good bad debt

    Many businesses’ accounts are now showing signs of the recession in the form of bad debts. Getting tax relief at the earliest possible stage can help to reduce the pain. What can you claim...

    Bad debts - in the top five

    The Taxman is predictable because he asks the same questions about company accounts again and again. One of his favourites is bad debt provisions. What is he looking for and how should you be prepared?

    Fortune tellers see less for Taxman

    Your annual figures are done. The good news is that profits are higher than expected. The bad news is there’s more Corporation Tax to pay. But introducing yourself to fortune telling may yet...