VAT on a provision for a bad debt

[Anthony Shepard]

Hi,

If I make a provision for a bad debt am I allowed to claim back the VAT or does the debt need to be completely written off before I can reclaim the VAT?

 

[White Collar Legal]

It may be different for you, but for me, my accountant recorded it as bad debt in my accounts and applied the appropriate journals to my accounts software to reclaim the VAT.

Best speaking to an accountant.

 

[MyAccountantOnline]

Have a read of this it should give you all of the information you need.

 

[MyAccountantOnline]

Hi,

If I make a provision for a bad debt am I allowed to claim back the VAT or does the debt need to be completely written off before I can reclaim the VAT?

As a thought are you able to, and, or have you ever considered using cash accounting?

 

[Anthony Shepard]

Thank you! That guide explains everything.

 

[MyAccountantOnline]

Thank you! That guide explains everything.

You are welcome Its often worth searching the HMRC guides they are quite good.