We have an account that carries an overpayment by a client of £5000. It has been there for 4 years. My accountant says we should leave it because after 7 years we can keep it. Is this true?
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Overpaid invoice
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Overpaid invoice
Let us not forget EU open doors immigration benefits IT contractors more than anyone -
Back in my auditing days, we use to advise client to advise their customers that they have been overpaid and ask if they want paying back and then just sit on the cash. If they are chosen to be ignored, it's deemed as additional sales/turnover. -
Originally posted by Craig@InTouch View PostBack in my auditing days, we use to advise client to advise their customers that they have been overpaid and ask if they want paying back and then just sit on the cash. If they are chosen to be ignored, it's deemed as additional sales/turnover.
Thank you for that
What if the client asks for it back in a couple of years time?Let us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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After 6 or 7 years, it's unlikely they would, but if they do and you've declared it as additional income already then just write it back resulting in a reduction of your business tax.
Oh, and ask them who their accountant is because they should have spotted and advised your client that they've overpaid £5k to their supplier after the first year of the accounts, or second year of the accounts, or third year of the accounts....you get the picture!Comment
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Originally posted by Craig@InTouch View PostAfter 6 or 7 years, it's unlikely they would, but if they do and you've declared it as additional income already then just write it back resulting in a reduction of your business tax.
Oh, and ask them who their accountant is because they should have spotted and advised your client that they've overpaid £5k to their supplier after the first year of the accounts, or second year of the accounts, or third year of the accounts....you get the picture!
Thank you.Let us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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How much effort have you put in to advising the client of the over payment? A single mail that might have gone to the wrong person or persistent attempts until the client acknowledges the situation?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostHow much effort have you put in to advising the client of the over payment? A single mail that might have gone to the wrong person or persistent attempts until the client acknowledges the situation?Let us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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Originally posted by DodgyAgent View Postseveral statementsComment
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Originally posted by tractor View PostBut was the overpayment hidden in amongst a lot of outstanding items and therefore easy to overlookFree advice and opinions - refunds are available if you are not 100% satisfied.Comment
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Originally posted by Wanderer View PostSo here is the ethical dilemma: does DodgyAgent tell his boss?
PS I am the boss so get on with some workLet us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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