Online tax return - where to put in bad debts?

Steel_2

For the first time this year I have to declare a bad debt for a client that liquidated.

On the paper return, there is a line for 'bad debts' but on the online form I don't see it in the expenses section. My profits were more than my debt this year so it's not a loss.

Does it go into the "Other allowable business expenses" line?

fengirl_2

Yes, it goes in other allowable expenses.

Steel_2

Thank you!

Fengirl - how can I get really good at understanding tax issues?

This is the second time I've filed my returns online myself and found the process generally quite simple. But this year I'm planning on ramping up my earnings which I'm sure will add a layer of complication, VAT, business assets etc.

I may well go back to getting an accountant to do it, but would still like to understand the issues and the process.

Any advice?

fengirl_2

I think you first of all need to understand book keeping - well maintained records will make your accountant's job easier and so cheaper. Then you maybe need to understand how accounts are prepared - lots of books on this.
Tax issues are dealt with on HMRC's website.
But I would say that if you are turning over something approaching the VAT threshold, you should be employing an accountant.