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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...
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...
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?
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...
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...
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...
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?
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...