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VAT bad debt relief

SharifaK13SharifaK13 Registered Posts: 1
edited August 2019 in Credit Management
Hi, I am slightly confused on this sample qn in BPP:

A business intends to claim VAT bad debt relief for an overdue debt amounting to £10,440 including VAT at the standard rate of 20%. Calculate the VAT that can be reclaimed.

Any help please?


  • hal978hal978 LondonMAAT, AAT Licensed Accountant Posts: 187
    Divide by 6
  • Jules18Jules18 Settling In Nicely Registered, Tutor Posts: 102
    edited August 2019
    ... assuming that it meets the Bad Debt Relief criteria concerning the age of the debt etc then that is absolutely correct.
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