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    Value added tax - Routine VAT - Bad debts - 81360

    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...

    Value added tax - Routine VAT - Cash accounting scheme - Special situations - Outsourcing debt collection - 81615

    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...

    Value added tax - Special accounting methods - Retail schemes - Using a retail scheme - Calculation elements - Expected selling price - 83520

    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 that must be sold by a certain...

    Value added tax - Administration - Records - Other records - 87060

    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...

    Flow chart - VAT bad debt relief

    Flow chart - VAT bad debt reliefIf you make supplies of goods or services to a customer but are not paid in full or in part, you may be able to claim a reduction in your VAT bill under the bad...

    Relief for bad debts

    Relief for bad debtsIn these difficult times, anything you can do to reduce a looming tax bill will undoubtedly help your business with its cash flow. You are likely to see many more unpaid invoices than...

    Using cash-based methods

    Using cash-based methodsSo far, this report has focused on how bad debts can be relieved for a business that uses traditional accruals-based accounting. Next, we look at how bad debts interact...

    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...

    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...

    Is bad debt relief due on employee theft?

    Is bad debt relief due on employee theft?..Dishonesty. In the case of Total Catering Equipment Ltd v HMRC [2019] TC07184 (see Follow up ), the company (T) was a victim of an employee’s fraudulent behaviour....