- VAT bad debt relief is available for businesses who have customers that are not paying their bills on time
- Businesses are still required to pay HMRC for the VAT charged to these customers and complete a VAT return
- VAT bad debt relief allows businesses to recover some of the money lost from unpaid VAT
- To be eligible for VAT bad debt relief, businesses must meet certain criteria, including having written off the debt in their VAT accounts and moving it to a bad debt account
- Businesses must also maintain meticulous records and provide documentation to HMRC when claiming VAT bad debt relief
- The application process for claiming VAT bad debt relief involves writing off the debt, keeping paperwork, and submitting a claim through the VAT online portal.
Source: bluedotcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
