BUDGET 2002: VAT relief for SMEs

The government is extending VAT relief for small businesses to cover bad debts.

In a move that had long been advocated by tax advisers to the small business community, Gordon Brown said the “costly and time-consuming” VAT charge on bad debts would be abolished.

Small to medium sized enterprises will now be able to recover VAT on bad debts after six months, said the Chancellor.

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