Personal feeling is that if a debt has not been paid in two years then you are never going to see the money. (Shorter periods where alternate evidence makes one believe that the debtor cannot or will not pay the debt).
However, I know of one practice locally who was paid a debt that they had written off after eleven years! Of course the debt was reapid without interest which petty much makes it a really cheap loan to the client over the period.
From HMRC's perspective their requirement is that enquiry should be made of the office dealing with the debtors' tax liabilities as to the extent to which their circumstances justify the deductions claimed. (see BIM42701).
You must also prove that you have made considerable efforts to retrieve the debt before it is written off.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
You mean like sending Bill (Wella) round first, Shaun?
Considerable effort is stuff like letters, telephone calls and email, going as far as turning up at the clients premises? I take it you don't have to provide evidence that you have paid any monies in order to try to collect the debt, ie: debt recovery agency fees?
Pretty sure that HMRC mean all reasonable steps including attempting to get the money out of the client via the legal system.
One should never go to a clients premises to attempt to extract the money as if they claim to have been threatened (whether true or not) you become the one that is in trouble rather than them.
Just remember that the UK legal system is always on the side of the criminal and bad debtors are criminals. (They have taken a service without paying for it).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
You mean like sending Bill (Wella) round first, Shaun?
Considerable effort is stuff like letters, telephone calls and email, going as far as turning up at the clients premises? I take it you don't have to provide evidence that you have paid any monies in order to try to collect the debt, ie: debt recovery agency fees?
Neil.
I only said I looked like a bouncer if I wore a suit. Mind you, sometimes that's all it takes
Shaun, there are all sorts of horror stories of HMRC sending round the heavies to extract tax that might be due (Private debt collection agencies I believe).
I know of two cases first hand where intimidation was used to gain entry to premises, with no real justification.
