Bad Debt Relief - saving of £58k
Our client had £400,000 on its debtor ledger, half of which was related to retentions in the building industry. The client was currently utilising invoice discounting from their financial provider.
We advised our client that it could file a bad debt relief claim on any debt that was more than six months’ old, allowing them to recover VAT until the debt had been fully paid. We would always advise clients to seek out bad debt relief wherever possible, particularly bearing in mind that that HMRC insist that creditors exceeding six months’ old must be adjusted.
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