VAT form-Unit 31

nova Registered Posts: 5 Regular contributor ⭐ ? ⭐
In unit 31, the VAT return form. Box 1, 'VAT due in this period on sales and other outputs', Here if the company have some bad debt, will the relevant VAT be relieved here? or not?
When I fill in the form,I deducted the VAT bad debt amount, but answer was wrong. Therefore bit confused.

Hope somebody can help.

Many thanks.


  • *Jo
    *Jo Registered Posts: 509
    Hi, the output and any other box is for paying vat due to HMRC. Any VAT claimed for bad debt should be claimed in the Input box. Try to think of it being due to HMRC- Outgoing (Output) and due from HMRC - Incoming (Input). If in future you receive payments from your debtors or receivers etc this would be paid over to HMRC by using the Output box.

  • nova
    nova Registered Posts: 5 Regular contributor ⭐ ? ⭐
    thank you for your help.

    I understand now the bad debt VAT relief should be in the Input box. How about the Total value of purchases and all other inputs box? Shall I add the bad debt net figure with the purchases made?
  • *Jo
    *Jo Registered Posts: 509
    Hello again,

    Purely from memory I don't believe the net figure of the bad debt is included in the purchases. Maybe the HMRC Website can clarify this.

    Apologies if im wrong.
  • A-Vic
    A-Vic Registered Posts: 6,970
    Bad debt it like a refund you are recliaming the vat so i think it will be included but you had better check
  • A-Vic
    A-Vic Registered Posts: 6,970
    When you can reclaim VAT on bad debts
    You can reclaim VAT that you paid to HMRC and which you have not received from the customer. The conditions are that:

    the debt is more than six months old and less than three years and six months old
    you have written off the debt in your VAT accounts and transferred it to a separate bad debt account
    the debt has not been sold or handed to a factoring company
    you did not charge more than the normal selling price for the items
    How to claim bad debt relief
    If you are entitled to claim bad debt relief, you add the amount of VAT you are reclaiming to the amount of VAT you are reclaiming on your purchases (input tax) and put the total figure in Box 4 of your VAT return.

    To work out how much bad debt relief you can claim on a VAT inclusive balance, you need to apply the VAT fraction to the unpaid amount.

    Get information about how to complete and file a VAT return

    Get information on how to calculate VAT for VAT-inclusive amounts using the VAT fraction

    as i thought
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