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Another VAT question

abs

abs

New Member
I have a hypothetical question about filling in a tax return.

If there is a bad debt written off (over six months) say sales of £200 plus £30 VAT. I know that the £30 VAT should be included in box 4 (VAT on inputs) but where do I include the £200, does it get deducted off Box 5 (sales) or added to box 7 (purchases).

Any advice would be appreciated
 
Scottish Business Owner

Scottish Business Owner

New Member
Hi Theresia,

The £200 should be taken off the sales turnover (Box 5). It isn't technically an input but a negative output but let's not split hairs over that as it has the same result.

Make sure you have exhausted all avenues on the debt side before you write it off as well.
 
abs

abs

New Member
Thanks so much Barrie, you're a star!

It is actually hypothetical as it is for a test. I knew what to do with everything else but that part of it I had never covered.

SBF is great!

Theresia
 
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