Paid twice by client???

henryphillips2

I run a small limited company and a client of mine has recently accidently paid me twice for some work done for them. The amount is about 10k and they have paid it directly into my bank account.

This is the last time I will be doing work for the client and they have constantly be trying to rip me off in all the time I have known them, so I have no moral issues with keeping the money. Obviously I'll pay it back if they ask for it.

Anyway, I don't want to turn this into a moral debate. My issue is my company accounts now don't balance with my bank statements - ie there is no invoice to cover this 10k. So what do I do with the money? If I inform the Inland Revenue about this revenue I will need to pay VAT, corporation tax on it etc. If I pay it to myself it will look dodgy if there is no income tax. Obviously, I'd hate to declare the tax only for the client to then ask for the money back in 6 months time.

...so what do I do with the money that keeps the Inland Revenue happy? (apart form pay it back of course!)

pagan705

I can't believe you are seriously considering keeping this money ...Just Pay it back !!!

Unless they are a very very big company they ARE going to notice a shortfall of 10K in their accounts. I'd be asking myself how I'd feel if I'd accidently paid someone twice & they'd said nothing.

Be honest & give them a call. If they are such a bad company don't do any work for them & don't take their money. I'd only want to work with others I could trust ...wouldn't you ? & wouldn't they too ?

lesley1960

It should go on as a payment on account , and it will affect your tax , and VAT ( but without an invoice only if you are on the cash accounting scheme ) , when you pay it back this will of course be adjusted.

Please note i said when not if lol

Bossyboots

You are committing a criminal offence by not attempting to return the money even if it is not asked for.

martindow

I think you run a big risk not paying it back as soon as possible. It's a small world and any suggestion of lack of honesty on your part could be very damaging to your business. Pay it back today!

full-time-mum

You've got to pay it back although I don't blame you for wanting to hang on to it if they have been trying to rip you off.

If you want to be really cheeky then hang on to it for as long as you could reasonably 'not have noticed' and keep the interest - they can't have noticed yet can they so you are ok for the time being.

henryphillips2

I think I might go with the recommendation of full-time-mum.... I make a few quid out of it in interest, they get their money back, my company accounts all balance and I can sleep at night again - everyone is a winner!

mikewebs

Easy answer:

Ask your customer whether he wants the 10K returned or if you can apply it to his account as a payment on account. Problem solved - you've asked him what he wants to do - the ball is in his court.

HTH

full-time-mum

mikewebs wrote:

Easy answer:

Ask your customer whether he wants the 10K returned or if you can apply it to his account as a payment on account. Problem solved - you've asked him what he wants to do - the ball is in his court.

HTH

No, no, no. Read the first post again. This customer has been a pain in the proverbial and OP doesn't want to do business with him again.

Neat answer in other circumstances though.

lethal_2

keep the money! run to spain!

jkz - well u culd?

Savvy_Sue

full-time-mum wrote:

No, no, no. Read the first post again. This customer has been a pain in the proverbial and OP doesn't want to do business with him again.

Neat answer in other circumstances though.

Ah, but just because you've got a customer's money 'on account' surely doesn't mean you have to accept the next job they offer you, or the one after that, or the one after that ... :rotfl:

Eventually the client might twig that they're never going to get their money's worth, but in the mean time ...

So on that basis I thought it was a VERY Neat answer!