SLfT6007 - Repayment of credit for bad debt relief

SLfT guidance on the circumstances in which a landfill operator must repay credit to Revenue Scotland after it has been claimed.

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:

 then you will have to repay us the amount of the claim to which the failure to comply relates.

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