My agency had an issue with their payments system and accidentally sent my company a payment in the amount of a few hundred pounds. I am about to pay it back. I was wondering whether to put this in the company books and if so, what to enter it as.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
How to account for an error payment
Collapse
X
-
-
Hoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong. -
You really shouldn't feel like that about your accountant, change to one that is easy to talk to.
Put it in as a correction, note against the credit and debit indicating it was paid in error, very simple really.Comment
-
Book it as an advance payment on your next invoice? It will be easier for them to just subtract it from the next invoice amount and pay the outstanding amount, I imagine.Comment
-
Originally posted by unixman View PostHoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.Comment
-
Originally posted by unixman View PostHoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.
If you simply repay the money to the agency you could simply contra off the entries on your bank statement and ignore both of them as they will cancel each other out, this is the simplest thing to do.
If you use an online portal or similar and need to account for the payments just put both the money in and money out to your trade debtors account and they will cancel each other out in there.
Martin
Contratax LtdComment
-
Originally posted by TykeMerc View PostYou really shouldn't feel like that about your accountant, change to one that is easy to talk to.
Put it in as a correction, note against the credit and debit indicating it was paid in error, very simple really.
@borderreiver thanks for the suggestion but they have asked me to pay it straight back.
@Alan yes I will be changing soon, thanks.Comment
-
Originally posted by unixman View PostHoped I wouldn't have to add this bit. I would ask my accountant, but (a) speaking the them is like getting an audience with the pope (b) they wouldn't know, (c) it would take them 3 weeks to answer and (d) the answer would be wrong.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Credit Bank, debit Suspense Account. Remember to hold your breath when you enter the credit into the ledger, and only release it when you've entered the debit.
Or something like that....Comment
-
The most pragmatic way is either:
(a) enter as sales and subsequent refund;
Or (b) post both to sundries.
So long as both items are in the same place they will contra out.
Yes, you can post to suspense, etc, but that relies on knowing a bit about the double entry system devised by an Italian Monk some years ago.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment