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Payment made to wrong account

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    #11
    Originally posted by TykeMerc View Post
    Ok, that makes sense, it's expenses incurred (even if it was via a legal action) and it's sensible to draw that money down as personal expenses with the appropriate entry in your books.


    Thanks. That's how I'll handle it.


    As a background, I paid it initially out of my personal account because my solicitor felt the issue would be resolved with one letter (at a cost of around £200, which I would have been happy to forget about in the grand scheme of things). That was over a year ago, and I just kept paying out of my personal account as the bills continued to come in.
    …Maybe we ain’t that young anymore

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      #12
      If the money has nothing to do with your business, record it as a loan to YourCo (credit the director's loan account) and then simply withdraw the money and show the payment as from the DLA.

      If the money was intended for you and you have evidence that the money was intended for you, then I can't think of any reason why you'd put this down as company income and then withdraw it as a potentially taxable expense payment.

      If the money should have been paid to YourCo then yes, you'll need to claim it as an expense if you've been making payments on behalf of the company.

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        #13
        If it's your money paid in error into the wrong account then you could just pay it back to the payer and then ask them to pay it into the right place, which would be a little pointless, or just transfer it yourself, perhaps keeping some kind of evidence just in case anybody ever looks at your bank statements. It's your money, not the company's, so any talk of putting it through the books is ridiculous.

        Whether it's actually the business' money or your personal money is a different question.
        Will work inside IR35. Or for food.

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          #14
          Originally posted by WTFH View Post
          Thanks. I'm too lazy to do that.


          (well, I thought I'd ask here in case anyone had an answer that was helpful)
          Good luck with that!

          I'd just transfer it out, note it on whatever spreadsheet/system you use to keep track and let the accountant deal with it at year end.
          I had similar when I started trading... First invoice had to be paid to me personally because co account wasnt ready - all sorted with accountant.
          However the client failed to change the account for the next 2 invoices after the account was set up... Just noted it on a ss and sent it to accountant at year end.

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            #15
            Originally posted by Snarf View Post
            I'd just transfer it out, note it on whatever spreadsheet/system you use to keep track and let the accountant deal with it at year end.
            There's nothing to deal with at the year end. It doesn't affect the balance sheet either way.
            Will work inside IR35. Or for food.

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              #16
              Originally posted by VectraMan View Post
              There's nothing to deal with at the year end. It doesn't affect the balance sheet either way.
              I didn't say how he would deal with it...
              Ignoring it is a way of him dealing with it!

              I give him bank statements and a separate ss detailing any cash withdrawals or strange transactions that need additional explanation.

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                #17
                Originally posted by northernladuk View Post
                Let me ring your accountant. I'll post their reply when I get through to them.
                Actual lol. In an open plan office.

                Add it to the NLUK comment generator immediately.

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                  #18
                  To be serious OP, it definitely has to go "through the books". Don't even think about appropriating 5k from your company unrecorded(!). Ask the accountant what to describe it as. Then shove it in the spreadsheet or whatever.

                  Just stepping back a moment, the whole thing sounds a bit shady. If you are operating in such a way that your Co finances and you own can become confused in the order of 5k, perhaps you are not being as financially hygenic as you oughta'.

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                    #19
                    And I think we can consider this thread closed.
                    Down with racism. Long live miscegenation!

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