VAT – relief for Impairment losses

This topic has 1 reply, 2 voices, and was last updated 1 year ago by JillyB.

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November 16, 2024 at 11:36 am #713272
Iniss
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In the following quarter to 30 June 2024, the following information is available in
respect of outstanding customer debts:
Customer Invoice date Payment due date Output VAT
Armour Ltd 1 November 2019 30 November 2018 640
Jousting Ltd 1 October 2023 1 November 2022 555
Marion Ltd 15 December 2023 31 January 2024 759
All of the above debts have been written off in Knight Ltd’s accounts except for the
debt due from Jousting Ltd, as Knight Ltd is still hopeful that the debt will be paid.

How much relief for impairment losses can Knight Ltd claim in respect of the quarter
to 30 June 2024?

I take 640 + 759 = 1399 because they due for payments for more than 6 months . However, the model answer is 0.
Can you please explain why?
November 19, 2024 at 2:05 pm #713353
JillyB
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Marion is under 6 months so they cannot yet claim
Jousting has not been written off
Armour is over four years old – they should have claimed before
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