Council bosses are expected to agree to write off a debt of nearly £400,000 that they were owed when an electrical business went bust last year.
HI Group plc, based on Tuscany Way, in Normanton, owed Wakefield Council £384,536.02 in business rates when they went into administration in September last year.
But the council’s cabinet committee have been recommended to write off the debt.
A report to Tuesday’s cabinet meeting said the decision would have no impact on the council’s finances because business rate collections were paid straight to the government up until the start of this month.
It said: “The debt is deemed to be non-recoverable and it is good financial practice to write off non-recoverable debt as soon as it is practical to do so.
HI Group, which includes the companies Hardman Isherwood and Fridgemaster Corporation, began to struggle for cash in spring last year.
It asked the council to accept reduced payments throughout the summer.
But in September the company had not recovered and had to go into administration, costing more than 100 people their jobs.
The cabinet report said changes introduced at the beginning of April meant that the council would have to meet half of the costs of bad debts from now on.