Bad Debt Relief - saving of £58k

The client

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.

Our advice

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.

Contact The VAT People

To speak to an expert about any aspect of VAT, contact us today. Our specialist team has years of experience helping clients in a variety of industries. Either call us on 0161 477 6600, or fill out an online enquiry form and we will get back to you.

Useful Information

Watch Our Videos

Get the vital information you need quickly and easily by watching one of our guidance videos - topics include VAT assessments and penalties, VAT for charities, and maximising VAT recovery.

View Videos