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???