FAQ
When can I reclaim VAT on a bad debt?
HMRC VAT Notice 700/18 lets you reclaim output VAT once an invoice is 6+ months overdue and written off in your accounts.
1 min readLast updated 26 May 2026
Under HMRC VAT Notice 700/18, the invoice must be at least 6 months overdue (counted from due_date, not issue_date) AND written off in your accounts. Blankitt auto-creates a pending claim row when you write off an eligible specific provision — no toggle, it's opt-out. The pending claim folds into the next VAT return's Box 4 on submission, and flips to claimed with the return ID stamped against it once HMRC accepts the return. The flat-rate scheme is ineligible because Box 4 is fixed by the flat-rate percentage, not your actual input VAT — Blankitt skips the claim entirely if your scheme is flat_rate.