BUDGET 2002: VAT relief for SMEs
Budget news as it happens
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.