Having debt at the start of a new year, business owners tend to review last year’s performance and chase outstanding invoices from their clients.
Generally, a fully taxable business is entitled to charge VAT on the supply of goods and services they provide to their customers.
This would mean they have immediately invoiced their customers after providing these services or goods.
Business owners then have to report VAT received to HMRC and pay any VAT due or claim VAT back.
Our Northampton accountants are ever ready to help you write off your bad debts by using several approaches like the direct write-off method and allowance method.