Fiducia TogetherWrite-off and provision for bad debts
Accepting that an invoice will not be paid, and recognising it in the accounts.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A specific provision reduces the value of a named doubtful debt. A write-off removes it entirely.
Why it matters
Carrying uncollectable debts as assets overstates the balance sheet and flatters the profit.
What it looks like in practice
Review aged debtors monthly and provide against anything genuinely doubtful. Writing off does not stop you pursuing it.
What to watch out for
A general provision as a percentage of debtors, which is not generally allowable for tax. Specific provisions against identified debts are.
Where to get proper advice
Your accountant.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.