Client has double paid an invoice

[d000hg]

Are you still working for this client? If so surely you can just correct in next invoice(s) with a note.

Because you are a company director with a set of responsibilities that include having a basic knowledge of accounting good practice (which is what this is).

Someone's on their high horse.

[malvolio]

Are you still working for this client? If so surely you can just correct in next invoice(s) with a note.

Someone's on their high horse.

And someone's ignoring reality...

[TheCyclingProgrammer]

Are you still working for this client? If so surely you can just correct in next invoice(s) with a note.

If OP is going to invoice them again, they could apply any credit against the invoice directly but only if the client agrees. If the client wants the money back now they should give it back.

[BlueSharp]

If OP is going to invoice them again, they could apply any credit against the invoice directly but only if the client agrees. If the client wants the money back now they should give it back.

Pretty much what the accountant said. Ask the client how they want to handle it. Still no word from them yet. I will chase again now Easter is over and everyone is in the office. I'm in meetings with the board next week so might mention it to the MD and FD if i get no response!

Never worked for a client who is this disorganised before, the promised contract renewal needs to materialize by the end of next week as well otherwise I get an unexpected few weeks off while I get something else organised!

[d000hg]

If OP is going to invoice them again, they could apply any credit against the invoice directly but only if the client agrees. If the client wants the money back now they should give it back.

So you send an email saying you will apply a credit against future invoice(s) unless they contact you how they wish the money to be repaid. If they don't reply, you don't need to chase them.

[Lance]

So you send an email saying you will apply a credit against future invoice(s) unless they contact you how they wish the money to be repaid. If they don't reply, you don't need to chase them.

that doesn't work I don't think.
If you raise an invoice for £10k and apply a credit for say £5k against it they owe only £5k against that invoice so that's all they'll pay. Which is sort of OK but doesn't factor in the overpayment. There will still be some money that shouldn't exist.

2 choices here. Repay it, or don't repay it. But if you don't repay it it needs to be accounted for correctly. And an overpayment isn't so easy to account for correctly. As Craig@clarity suggested (the qualified accountant), make it income and pay VAT on it.

[Abbot]

that doesn't work I don't think.
If you raise an invoice for £10k and apply a credit for say £5k against it they owe only £5k against that invoice so that's all they'll pay. Which is sort of OK but doesn't factor in the overpayment. There will still be some money that shouldn't exist.

2 choices here. Repay it, or don't repay it. But if you don't repay it it needs to be accounted for correctly. And an overpayment isn't so easy to account for correctly. As Craig@clarity suggested (the qualified accountant), make it income and pay VAT on it.

The overpayment would just be applied as a payment on account against the client’s receivables account. There is no VAT implications of an overpayment by a client.

The easiest thing to do is ask the client what they want to do. If they haven’t replied by the next invoice date, issue a supplier statement with the next invoice stating the opening balance as the overpayment and the opening balance being applied to the current invoice. This will leave either a zero balance or a debit or credit on the account and they will be aware of this. This will demonstrate that the debit you have in your receivables is current and cleared at each invoicing cycle.

[Craig@Clarity]

The overpayment would just be applied as a payment on account against the client’s receivables account. There is no VAT implications of an overpayment by a client.

Go careful here. If it's an overpayment then it should sit in other creditors and refunded to the client. No VAT implications.

If it's a payment on account sat in the client's receivable account (payment in advance of supply of services with no VAT invoice issued yet) then the tax point is the date the payment was received and there IS VAT implications.

Two different treatments, albeit maybe "subtle", but has potential VAT implications.