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HMRC internal manual

VAT Bad Debt Relief

Making a claim: Notification of claim to customer

For supplies made between 1 May 1997 and 31 December 2002, a notification of claim must be sent to the customer (unless the customer is not registered for VAT) within 7 days of making a claim. An example of a notification is shown below.

Example of notification letter

To: XYZ Ltd From: ABC Ltd

Notification of a claim for VAT bad debt relief

I hereby notify you of a claim for VAT bad debt relief in respect of the following supply/supplies made to you for which payment has not been received.

Date of this notice: 25 August 2002

Invoice date: 10 January 2002

Invoice No: 5/02

Total amount due: £117.50

Bad debt relief claim: £ 17.50

Date of claim: 21 August 2002

You are now required to repay any VAT claimed on these supplies to Customs and Excise until such time as payment is made.

This notification has been issued to comply with the VAT Regulations 1995 (as amended). Payment including VAT in respect of the supplies remains due and should be made forthwith.
The notification of claim must include the following:

  • date of issue of the notice;
  • date of the claim for bad debt relief;
  • date and number of any invoice issued upon which the claim has been based;
  • amount of consideration that has been written off, in relation to each supply upon which the claim is based;
  • amount of the claim.