Overpaid as a limited company freelancer

braddlesboom

Hi all, quick question. I've just noticed I've been paid twice for some freelance work I did a couple of weeks ago. Ie, they've put the identical amount in my account two weeks running.

I could actually use this money as a back-up over xmas, though I think i will pay it back once things are a little more stable (freelancing dies over the festive period).

Anyway, my questions are a) do i actually need to pay it back, will they notice etc, and b) Any idea how this will affect my tax return for my limited company, given that I only submitted one invoice for the hours worked.

Thanks

B

sangie595

braddlesboom wrote: »

Hi all, quick question. I've just noticed I've been paid twice for some freelance work I did a couple of weeks ago. Ie, they've put the identical amount in my account two weeks running.

I could actually use this money as a back-up over xmas, though I think i will pay it back once things are a little more stable (freelancing dies over the festive period).

Anyway, my questions are a) do i actually need to pay it back, will they notice etc, and b) Any idea how this will affect my tax return for my limited company, given that I only submitted one invoice for the hours worked.

Thanks

B

You'd like us to tell you that it will be ok to be dishonest provided it's handy for you and maybe they won't notice? You noticed. Therefore it is dishonest.

tomtontom

As you know that work goes quiet over Christmas, presumably you've budgeted accordingly?

If you choose not to say anything then you'd best get thinking of a new career. When this is discovered (and it will be) your reputation will be down the pan.

TELLIT01

Will they notice? Who can say.
If they do, and you have said nothing it could cause reputational damage.
How do you plan to 'disguise' the payment on your returns to HMRC. The payment shows twice on your bank statement but only once on your tax return. There is a simple term for that 'tax fraud'.

ACG

You will have to pay it back if they pick up on it yes. Unless you wind up the company but thats effectively biting thehand that feeds you.

Morally you should pay it back regardless.

You have to declare your income to the tax man. Regardless of whether you have invoiced for it or not. I sometimes get paid by clients before sending them an invoice, others do not want or need it - its not tax free money. An invoice is just effectively a paper trail for everyones benefit.

agrinnall

If they notice before you pay it back voluntarily then there's a fair chance you can kiss goodbye to any more work for that client.

braddlesboom

ok, thanks guys - all good points. I'll let them know on Monday. Ironically I guess I'll come out of it smelling of roses so may get more work out of them as a result.

yes, i did try to budget for xmas, however as a freelancer you never quite know how !!!!'s gonna turn out. I could get a lucrative four day contract on monday which would see me right or have nothing till mid january. such is life.

getmore4less

If things are that bad you need to be building up a few months buffer funds.