Repayment following receipt of a payment from a customer after a successful claim for bad debt relief
If you have claimed credit for bad debt relief and you subsequently receive any payment from your customer (or a payment is treated as attributed to the relevant disposal – see SLfT6005), you will have to repay us some or all of the credit.
The amount that you have to repay is calculated as the credit claimed, multiplied by a fraction, of which:
- the numerator is the amount received or attributed; and
- the denominator is the outstanding consideration for the disposal.
Using the example in SLfT6005:
- amount of credit claimed - £41.81;
- payment received - £20.00;
- amount of debt outstanding - £92.50;
- amount repayable - £41.81 × £20/£92.50 = £9.04.
Repayment following failure to comply with record keeping related requirements
If you have claimed credit for bad debt relief and you subsequently:
- fail to comply with the requirements to make and keep a record for each claim in a landfill tax bad debt account (see SLfT6004); or
- in relation to any of the documents in such a record, you fail to comply with either:
- section 99(1) of the RSTPA 2014 (Revenue Scotland assessment – see RSTP1008); or
- any obligation arising under section 111(4)(a) of that Act (reimbursement arrangements in relation to determining whether unjustified enrichment applies – see RSTP7006),
then you will have to repay us the amount of the claim to which the failure to comply relates.