Case: Input tax reimbursement

As part of the Bad Debt Relief rules, a purchaser that has not paid an invoice within six months of its due date must reimburse to HMRC the input tax it has previously claimed. The supplier would be supposed to claim bad debt relief at around the same time.

But, when would the six months start if an invoice had no due date, as is commonly the case where invoices are issued to a related company?

The decision in Premspec (TC07653) helps answer this.