Bad debt relief

You may claim bad debt relief when:

  • you have accounted for Value-Added Tax (VAT) on a supply of goods or services to a customer
  • and
  • that customer defaults in full or in part on payment due to you in respect of that supply. 

You cannot claim bad debt relief if you are accounting for VAT on the moneys received basis.

Further guidance contains more detailed information on the Bad Debt Relief.