Gone bad

I was very interested in the reply to query T17 104 concerning the VAT treatment of refunds to customers under the flat rate scheme. I also have a problem on an aspect of the scheme in relation to bad debt relief.

I have a client who recently suffered a bad debt for £10 000 plus VAT. We never included the sale in the flat rate scheme calculation because my client adopts the cash basis for calculating his gross sales.

However I understand from a colleague that there may be some additional VAT that my client can claim in this situation as a special concession.

My client uses the 10% flat rate — so does that mean we can claim 10% of the gross invoice value as a special entry on his next VAT return?

Possibly in Box 4 of the return?...