Bad debts

HMRC have issued Notice 700/18: Relief from VAT on bad debts. It provides guidance on claiming relief from VAT on bad debts incurred and repayment of VAT claimed which you have not been paid for.

The notice is effective now and replaces the December 2002 edition of the notice. The notice has been rewritten and examples have been reworked to reflect the 20 per cent standard rate of VAT.