According to the previous Bookkeeper 2-3 years ago Amex failed to credit our bank account with customer card payments worth £30k. The Bookkeeper tried but failed to collect this money from Amex (very strange!) and had written off customer accounts outstanding balances totalling to £30k. He does not remember if VAT on theses sales was written off as well at that time or was it paid to HMRC, which customer accounts were affected or which account(s) it was written off to. I am not able to trace these transactions in the system. My question is, as we now have received £30k into or bank account, which is technically our income, should we account for VAT on this receipt? I personally think we should. Do I create a sales invoice for the gross of £30k? The additional bookkeeping complication is: the receipt of £30k was debited to the bank and credited to the sales account in the previous accounting period and I am nor sure what the entries in the new financial year should be.