Overpaid invoice

[DodgyAgent]

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?

[Craig@Clarity]

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.

[DodgyAgent]

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.

Thank you for that

What if the client asks for it back in a couple of years time?

[Craig@Clarity]

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!

[DodgyAgent]

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!

You are a star what are the chances of them ever picking it up? They are a very large global company

Thank you.

[northernladuk]

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?

[DodgyAgent]

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?

several statements

[tractor]

several statements

But was the overpayment hidden in amongst a lot of outstanding items and therefore easy to overlook

[Wanderer]

But was the overpayment hidden in amongst a lot of outstanding items and therefore easy to overlook

So here is the ethical dilemma: does DodgyAgent tell his boss?

[DodgyAgent]

So here is the ethical dilemma: does DodgyAgent tell his boss?

My question is nothing to do with ethics it is part of a fraud investigation involving one of my staff several years ago. If you want to have an "ethics" conversation then go to General

PS I am the boss so get on with some work