non-paying customers and tax write-down?

[Grace'sDad]

Does anyone know the rules regarding non-paying customers and tax?
I am finishing off my tax return (last minute as ever - I enjoy pressure but not fines) and I am unsure as to how this works.

I had 1 customer last year who refused to pay part (£ 170) of a bill - I let it go.

Another was just a plain mentalist and wouldn't pay at all - cost me about £ 400.00 in all and fortunately I sussed him out halfway into the job. Took legal advice etc but this was the ONE & ONLY job I've ever done on trust and without any paperwork. I could've kicked myself.

Finally, I spent 2 wasted days waiting for site to come free. In the end I had to walk away and start another job. Can I say this cost me 2 days?

Can I write these off for tax purposes??? Anyone know?

(don't tell me off coz it's the 28th!)

 

[grumpygrouter]

Anything you have invoiced and has not been paid, either in full or part, should be written off as soon as you know for sure it is a bad debt. You can only do this for invoiced work, if you have lost 2 days because of site reasons and you have not invoiced for your time then unfortunately you have lost this.

 

[Fekin]

Everyone else is busy doing their tax returns mate to reply :lol:

 

[grumpygrouter]

Everyone else is busy doing their tax returns mate to reply :lol:

I am busy doing other peoples returns but I have found time to reply :yes:

 

[Leatherface]

I had an unpaid invoice for £1650 last year...........
Whey hey, paid less tax, not all bad

 

[Grace'sDad]

Anything you have invoiced and has not been paid, either in full or part, should be written off as soon as you know for sure it is a bad debt. You can only do this for invoiced work, if you have lost 2 days because of site reasons and you have not invoiced for your time then unfortunately you have lost this.

thanks Grumpy! I didn't invoice the work as I knew they wouldn't pay up - my mistake I guess.

What's to stop someone producing invoices retrospectively? (apart from threat of investigation of course?)

 

[Leatherface]

by the way,
He has a lovely new van with new tyres and lovely paint work !
I hope it stays in good condition for him. :yes:

 

[Grace'sDad]

by the way,
He has a lovely new van with new tyres and lovely paint work !
I hope it stays in good condition for him. :yes:

I reckon a respray would cost around £1600 :yes:

 

[grumpygrouter]

thanks Grumpy! I didn't invoice the work as I knew they wouldn't pay up - my mistake I guess.

What's to stop someone producing invoices retrospectively? (apart from threat of investigation of course?)

That would be classed as false accounting i suppose and prison may result if convicted.

 

[Grace'sDad]

That would be classed as false accounting i suppose and prison may result if convicted.

I thought as much! Thanks. I'll have to keep better records this year (grumble grumble....)