Fee paid to agency for debt collection

Accounting
1

Hi everyone,
Hope everyone i sdoing great.
There are some debtors to whom we raised invoices, and they didn’t pay for a long time. We hired an agnecy which will collect the debt on our behalf. I just want to know the fee which i paid to debt collection agency is business expenses, and tax allowable expense by HMRC?
Eagerly looking forward for your reply.
Thanks!

2

Hello @asadrana

I’m sorry this would not be a question the support team could comment on.

I would recommend asking your accountant of HMRC as they could provide support and guidance of this nature.

3

Yes it is an allowable expense.

4

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