- "In the last 20 years our business has changed considerably…and as the focus of our business has changed, Bird Luckin have moved with us."
Alex Tanner, George Tanner (Shalford) Ltd - "Bird Luckin has looked after us incredibly well for over 60 years, they are pro-active and innovational - meeting all our needs to help us achieve our aims."
Richard Stubbings, Cliffords Limited - "I can honestly say that Bird Luckin are the best firm of accountants and auditors I have ever dealt with - and I don't say that lightly!"
Colin Webb, Walthamstow Stadium - "It's important for us to know that we will always be able to contact the right people to give us the right advice and support."
Jane Bennett, Bennetts Funeral Directors - "Although we deal mainly with one Partner … we also know that if we need to contact someone else who is a specialist in another area, we can get the advice we need quickly and easily"
Jeremy Ruggles, J.S. Wright & Sons Ltd - "Bird Luckin got us to a stage which would have taken us months - if not years - to reach on our own, and they got us there in a matter of weeks"
Matthew Sullivan, SNC Ltd - "You can be a good accountant, but if you don't have an understanding of the industry it can be very difficult. "There are two or three people we have regular contact with at Bird Luckin who know our business well, and it makes a difference.""
Robert Church, W A Church (Bures) Ltd - "The work which Bird Luckin has done for Boddingtons over the past few months has helped shape our future direction for the better."
John Warner, Chief Executive, Boddingtons Ltd - "Bird Luckin has acted for us since our inception 10 years ago. They have a very 'can do' yet highly professional attitude - we are very appreciative of their support and advice over the years."
Marlon Fox, Outlook Property Ltd
Bad debt relief
Under the normal rules of VAT, a supplier has to account for output tax even if the supply has not been paid for. VAT cannot be reclaimed by issuing a credit note for the unpaid amount.
Please note: The use of cash accounting or certain retail schemes removes the problem of VAT on bad debts from the supplier.
Conditions for bad debt relief
The supplier must have supplied goods or services for a consideration in money, and must have accounted for and paid VAT on the supply.
All or part of the consideration must have been written off as a bad debt by making the appropriate entry in the refunds for bad debts account.
At least six months (but not more than three years and six months) must have elapsed since the later of the date of supply or the due date for payment.
Records required
Various records and evidence must be kept (for four years from the date of claim), in particular to identify:
- The time and nature of the supply, the purchaser, and the consideration
- The amount of VAT chargeable on the supply
- The accounting period when this VAT was accounted for and paid to HM Revenue & Customs
- Any payment received for the supply
- Entries in the refund for bad debts account
- The accounting period in which the claim is made
Procedure for claiming relief
The claim is made by including the amount of the refund in Box 4 of the VAT Return (Form 100) for the period in which the debt becomes over six months old.
After making the claim, all associated records as described above must be kept for four years from the date of the claim. However, this does not alter the standard requirement to retain all VAT related records for six years.
There are special rules for part-payments and mutual supplies.
Repayment of refund
Repayment of VAT refunded is required where payment is subsequently received or where the conditions have not been complied with.
A refund does not have to be repaid if the supplier is insured for the VAT inclusive amount of the debt and is repaid by the insurer.
Refund of input tax by debtor
Businesses are required to monitor the time they take to pay their suppliers, and repay input tax claimed if they have not paid within six months.
Subsequent payment of all or part of the debt will allow a corresponding reclaim of input tax.
Please call us if you would like further help or advice in this area.