Sage Line 50 VAT on Bad Debts

Hoping someone can help me. I am using Sage Line 50 2011. When you write off a Bad Debt using the Bad Debt Wizard does it reclaim the VAT on your return on Sage or do you have to do something else? I thought it did but had a query on the Return so have been Googling and a few people have been saying that the Wizard doesn't reclaim the VAT on Sage. I have written off quite a large debt in March as the Customer went into Administration (debt is over six months old) and am in the process of doing my Return for filing so don't want to get it wrong. I also wrote one off last year and if I have been doing it wrong am I right in thinking I can still claim for this as having looked at the HMRC Website it states that you can reclaim within 4 years & 6 months of the later of the date payment was due & payable or the date of supply.

Any help would be greatly appreciated.



  • Rozzi Rainbow
    Rozzi Rainbow Registered Posts: 465
    Hi Jewels

    I'm using Sage 50 Accounts 2012, which I presume is the same/similar and it has never automatically reclaimed the VAT on bad debts. If you look through the entries on your Bad Debt nominal account, you should be able to tell if they are the gross figures or net - if they're gross then the VAT hasn't been reclaimed and you will need to do a journal.
  • jewels.p
    jewels.p Registered Posts: 1,774
    Thank you Rozzi. The VAT hasn't been reclaimed so I am going to have to go back and sort it out. I HATE VAT!!!!
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