bad debts

[huffpuff]

Hello,

Could someone give me some advise on the following or tell me where best to go and reseach the answers


How long is it before we can call a company bad debt?
Who needs to be notified?
How long is it before we can claim the VAT BACK?
Is there is any specific amount before a bad debt is recognized

Cheers

 

[jack2009]

you can call a debt a bad debt at any stage you want! nobody needs to be notified just issue a credit note on your system put do not send the credit note to the debtor as they do still owe you the money. And, reclaim the vat in your next vat return.

 

[JQ2002]

What are your credit terms?

Some companies have 120days, any invoices due past that date are bad debts.

However, a 120 day debt may still be collected, legal letters which are cheap to issue could result in full payment of the debt.