You may be able to claim relief from VAT on bad debts provided various conditions are met.

Certain supplies of education, training and research are exempt from VAT.

Where a separate charge is made for these services, however, it will be exempt from VAT.

Investment gold is exempt from VAT, subject to an option to tax.

Others are exempt from VAT or outside the system altogether.

Some supplies of goods and services are exempt from VAT.

It does not provide relief from other duties or VAT.

Currently, the majority of financial services are exempt from VAT.

However charities may be able to claim relief from VAT on some imports.

The £175 the charity has received is exempt from VAT.