Reclaim VAT on written off debts
Claim VAT back on written off debts
If you are owed money by a company who have gone into liquidation or simply gone bust please remember to claim back any VAT you may have paid.
Over the past 15 months, we have seen an obvious increase in debts being passed to us to collect to then find out the debtor have gone bust. Although it can be a devastating impact on your cashflow and business, not all is completely lost as the VAT you would have paid on that can be reclaimed or offset on your next VAT quarter. We have seen 5 figure VAT amounts being reclaimed following our clients customer going into liquidation. This doesn't just affect liquidation or dissolved company debts so be sure to reclaim the VAT on any accounts you have written off. We suggest you speak with your accountant if you require further advice. However, we would urge you to send any outstanding debts to us as soon as possible as we see time and again we invoices being passed to us way too late to collect.