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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...

    Corporation tax - Other income and expenses - Intangible assets - Corporation tax code - 7440

    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...

    Corporation tax - Other income and expenses - Loan relationships - Special situations - Impairment losses (bad debts) - 7935

    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...

    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...