Invoicing & Payments from 2 separate companies

Xstyle

Hi,
Hoping you can please?
There are 2 companies and the 1st one needs to close, so don't want any trading activities going through it. The issue is, a payment needs to be made to a supplier for the remaining 50%.
How can this payment be made from Company 2, without the supplier reissuing another invoice, they have already confirmed they won't, unless its for the whole amount.

Making a payment classes as trading, and you need 3 clear months before you can close a business.

Thanks,
Sid

Xstyle

The short answer, from an accountant, yes you can still pay debtors, and thats not classed as trading. So the bank was wrong!

HatAndScarf

Xstyle wrote: »

Hi,
Hoping you can please?
There are 2 companies and the 1st one needs to close, so don't want any trading activities going through it. The issue is, a payment needs to be made to a supplier for the remaining 50%.
How can this payment be made from Company 2, without the supplier reissuing another invoice, they have already confirmed they won't, unless its for the whole amount.

Making a payment classes as trading, and you need 3 clear months before you can close a business.

Thanks,
Sid

As a supplier, I wouldn't give 2 hoots where the money came from to pay my invoice ... as long as it is paid in full.

00ec25

Xstyle wrote: »

The short answer, from an accountant, yes you can still pay [STRIKE]debtors,[/STRIKE] and thats not classed as trading. So the bank was wrong!

creditors

HatAndScarf wrote: »

As a supplier, I wouldn't give 2 hoots where the money came from to pay my invoice ... as long as it is paid in full.

nonetheless as a business owner I'm sure you would not be so content when the expense is disallowed as not one incurred by the company who paid it, thereby making the payment into a director loan account transaction, and thus potentially liable for personal tax