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MIKE THEXTON examines the rules and conditions that must be satisfied for a business to obtain VAT bad debt relief
KEY POINTS
- Will the recent GMAC case extend the ability to claim bad debt relief (BDR)?
- The main conditions for a BDR claim.
- The need to account for bad debts.
- When can a credit note be used to reverse output tax?
- HMRC’s views contained in business briefs.
‘The youth of today will never believe it ' grumbled the Four Yorkshiremen in the famous comedy sketch as they recalled the hardships of the past.
The recent case of GMAC UK plc (TC00504) in the First-tier Tribunal was about the conditions for claiming VAT bad debt relief (BDR) ‘back when I were a lad’ which could be described as an insult added to injury: you had sold something to a customer for £1 000 had to pay £150 to Customs & Excise then discovered...
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