Should a Sole Trader include bad debt in this year's tax return

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1

I am currently trading as a sole trader and I am due on the 5th of April to submit my tax return, the question is I have one invoice that is 90 days overdue which is for only £15.

If I submit my tax return and then mark it as bad debt in a few more months when I am able to, will that then add the correct info to my reports for my 2021 tax return?

Thanks

2

In short, yes.

You pay tax on the “income” in this year and get the bad debt offset against tax the next.

3

Yes but also no.

Yes if you include invoiced income in your tax return.

No if you use the cash basis.

Depends on the method of reporting you use.

4

I include all invoices paid or not paid.

So I’m guessing I should include it then, then it will come off next years?

Thanks

5

Correct you should include it in that case.

6

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