Question for Eric Mc

[S6PNJ]

Hi Eric, over in the Business forum,

mr_spock said:

IIRC, if you get a CCJ and he doesn't pay you can at least claim the loss plus costs against tax.

Can you confirm if this is true please? This could help me with the tax man this year!

[Eric Mc]

If the debtor fails to pay you, then you can write the unpaid amount off against your profits as a "Bad Debt".

You can also reclaim any VAT you may have paid on the original sales invoice.

These claims can be made whether you have issued a CCJ or not.

You can also reclaim any costs you have incurred in chasing the bad debt - such as legal fees, court charges etc.

[S6PNJ]

Thanks Eric