Raising very late invoices and Corporation Tax treatment

[VectraMan]

If I don't receive the money for my outstanding invoices I will have paid too much corp tax, will I get a refund for this?

I've done this, and as the company had no more profit to offset it against, I ended up with a refund cheque from HMRC - which is nice. You need to be reasonably certain the debt will never be paid; I think I'd left it 18 months after invoicing and I knew the client was in financial difficulty. If you haven't invoiced then you probably can't call it a bad debt.

[DirtyDog]

Make sure you read your contracts carefully - every one that I've seen include clauses which say that you need to invoice within a time frame of the work being completed, eg.

For the avoidance of doubt, any fees not properly claimed by the Supplier according to clause X.X within the six week period will not by paid by <agency>

and

Valid accurate invoices...must be submitted within 3 months...Failure to submit invoices...may result in non-payment

All of mine have either been 6 weeks or 90 days, depending on the agency.

[Lex]

Thanks for this.

I am pretty sure mine said invoice within 60 days and if you do not you will only get paid once agency has been paid by client. I will recheck the contract tonight to be certain.

Think my records show invoices mostly raised except for one, so I am hoping all will be ok.

Make sure you read your contracts carefully - every one that I've seen include clauses which say that you need to invoice within a time frame of the work being completed, eg.



and



All of mine have either been 6 weeks or 90 days, depending on the agency.