how to treat uncashed cheques

goldring Registered Posts: 45 ? ? ?

Our company has a few cheques that haven't been cashed. They received the cheques but don't intend to cash them. when we write them back in the accounts, do we have to account for VAT?
Thanks for your input?


  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    edited March 2015
    Why aren't they intending on cashing the cheques? More info needed. I wonder if it will be caught by free gifts rules.
  • mcchoc
    mcchoc Registered, Tutor Posts: 59 Regular contributor ⭐ ? ⭐
    Are these unwanted (?) cheques for 'cash' purchases, or from your Trade Receivables simply paying their invoices?
  • goldring
    goldring Registered Posts: 45 ? ? ?
    hi, some are of very small amount, such as 3 pounds, 11 pounds, and they just don't bother to deposit them, refund overpayment of cash purchases, or as a small prize money paid out to them
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