Recording bad debt on quickfile

Accounting
1

Hi
I have a partly paid invoice where the company has now gone out of business. I have spoken to our accountant and he has said that I should show this as a bad debt and reclaim the VAT that has already been paid on the outstanding amount.
Can you let me know how I show the bad debt against the invoice and also how I enter the outstanding VAT on Quickfile so that it shows up correctly on my MTD VAT submission.

The only way I can see is by issuing a credit note but I don’t know if that is the correct way???

Thanks

2

Hi @Forestman

How old is the invoice?

QuickFile will automatically show a “bad debt” option if an invoice is still outstanding after 6 months.

3

It will be 6 mth old on 10th April. That’s a great feature. We did manage to get part payment before they went bust so will the outstanding figure be shown against our profits at year end which is the end of April?

4

Hi @Forestman

So long as you mark this as “Bad Debt” before the end of your financial year, then it will be included as “Bad Debt” in your Year End.

I hope this helps, but if you have any further questions, please don’t hesitate to ask.

5

This topic was automatically closed after 14 days. New replies are no longer allowed.