Back to Business: How to Make the Most of Bad Debt Relief and the Cash Basis
Practical mini-report in PDF
A Tips & Advice Special Report in PDF about...
In a nutshell
Finally, there’s some light at the end of the Coronavirus tunnel. Our editorial team has put together this Tips & Advice mini-report on bad debt relief for both direct tax and VAT to help you successfully get your business flourishing again, not just now but in the months ahead.
Using standard accounting methods means you include income from invoices that may not have been paid yet. It’s also likely that you’ll have to pay over VAT to HMRC even though you haven’t received payment from your customer. Identifying bad debts properly means that you can disregard amounts that are unlikely to be paid when working out your profits, and make it possible to claim a refund of VAT. If you switch to the cash basis of accounting, you can potentially accelerate this relief. With the separate VAT cash accounting scheme, you pay VAT on your sales when your customers pay you and reclaim VAT on purchases when you’ve paid your supplier. But there are certain conditions to be met and pitfalls to be wary of - this report shows you how to make the most of these valuable ways to improve cash flow.
New edition coming soon
Our editors are currently finalising a new edition of this publication.
Please contact our Customer Services department for more information and/or to pre-order the new edition now.Click here for our contact details.