How much of the debt can I claim if I’m using a Margin Scheme?
If for example you: Purchased goods for £400 And sold them for £500 Margin on which VAT is paid to Customs £100 If your customer pays you £350 Then the debt is £150 which is greater than the margin So bad debt relief is VAT fraction of £100 (margin) But if customer pays £450 Then the debt is £50 So bad debt relief is VAT fraction of £50 (debt) top ^
