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Provision for bad debts

This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.

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October 31, 2013 at 10:15 am #144197
hasanali95
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Is it allowed to make a general provision for bad debts as a percentage due to past experience?
Or is it that only specific allowances are allowed?
Thanks
October 31, 2013 at 1:53 pm #144213
MikeLittle
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Yes, you can make a general provision – but (as I remember from 10 years ago in the UK) the taxman will not allow a general provision expense to be deducted in arriving at taxable profits.
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