Invoicing & Payments from 2 separate companies

Xstyle
Xstyle Posts: 338
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edited 18 May 2018 at 11:22AM in Small biz MoneySaving
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

Comments

  • Xstyle
    Xstyle Posts: 338
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    The short answer, from an accountant, yes you can still pay debtors, and thats not classed as trading. So the bank was wrong!
  • HatAndScarf
    HatAndScarf Posts: 41 Forumite
    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
    00ec25 Posts: 9,123
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    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 :)
    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
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