Stop burning your cash

So what can be done to protect you from losing money? In the follow-up to his report last month, Garry Chapman looks at the tax impact on consultants who may have accrued over £250k’s worth of unpaid bills.

Consultants are typically taxed on work invoiced through the practice, so if any bill goes uncollected, they are literally pouring money down the drain.

This is further compounded if aged debtors are not managed efficiently. Some practices have no structured, objective process for tracking bad debts, including when to write them off. This means that tax has been paid on the billing that has never been claimed back.