Accounting Journal

Accounting Journal

Credit notes or VAT bad debt relief claim – which?

Asif Patel's avatar
Asif Patel
Nov 05, 2025
∙ Paid

Bad debts pose a significant challenge for every business. Staying on top of non-payments is essential for maintaining a healthy cash flow and ensuring the financial stability of a business, but what is the VAT situation if an invoice is not paid?

Credit note or bad debt relief?

The rules for claiming bad debt relief (BDR) on a VAT return and issuing cred…

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