Writing off bad debt

saphydog

I recently got duped by a customer who im pretty sure i will never get a penny out of and the sum isnt really worth chasing.

This is a first for me and iv just given up now and will take the loss.

Just wondered if i can write this sum off as a loss on my tax return.

Never had to do it before so unsure how to record it.

Its only £70 but every penny counts at the min

Horace

Have you tried to get the money back from the customer? I only ask because you have said that every penny counts at the moment and if there is a way of recovering the debt then there is no need to write it of as a bad debt.

Remember you can use moneyclaimonline to get a county court judgement - it costs about £30 but you can add that cost to the amount that you are claiming.

saphydog

Nope they completely vanished and im not even sure they are at the address anymore.

It was far an Indian lad with a very typical untraceable name

I have already wasted a lot of time trying to chase it up and its less hassle for me to write it off

somethingcorporate

Talk to your accountant but if memory serves correctly it should go as an expense in your P&L so yes, it should be off-settable (inventing a new word there) against your income.

Acc72

I am afraid that you will have to suffer the loss (if you are vat registered, you will be able to claim back the vat element of the invoice only on your next return).

I am normally one for uising the on-line service as recommended earlier, but this would have to be for a couple of hundred minimum to chase.

It is just not worth it for £70 particularly as this sounds like an individual and not a company, and also that their name and address may be questionable.

theesel1994

The VAT folk won't let you claim the VAT element back until the debt is 6 months old.