Payment made to wrong account

[WTFH]

(Did a search but couldn't find the answer, apologies if it's been asked before)


I have received a payment into my ltd co bank account which should have been made into my personal account. The amount is just over £5,000.


It's money which is owed to me personally for payments I made out of my personal account.


Can I just transfer it all out of the business account, or do I need to be declaring it on the company books and paying tax on it?

[northernladuk]

Let me ring your accountant. I'll post their reply when I get through to them.

[WTFH]

Let me ring your accountant. I'll post their reply when I get through to them.

Thanks. I'm too lazy to do that.


(well, I thought I'd ask here in case anyone had an answer that was helpful)

[Michael at BI Accountancy]

It's money which is owed to me personally for payments I made out of my personal account.

Was the payments in relation to expenses you incurred (mileage etc)?

If so you must put this down as sales for the company, and you should also claim for the expenses through your Ltd company. The two transactions will offset and you will be owed the expenses back from your company.

[TykeMerc]

The obvious approach is to repay the money and get it paid to the correct account.

It does beg the question as to why money that's owed to you personally would be paid to YourCo Ltd's account? Is the money owed due to expenses or a loan? It makes little sense that someone that owes it to you personally would have your business banking details.

[WTFH]

Was the payments in relation to expenses you incurred (mileage etc)?

If so you must put this down as sales for the company, and you should also claim for the expenses through your Ltd company. The two transactions will offset and you will be owed the expenses back from your company.

No, in relation to solicitors fees. I paid my solicitor out of my personal account, the defendant has now paid my costs into my business account.


But I guess I could expense them, since it was relating to an expense incurred by my business because to the defendant.

[northernladuk]

Thanks. I'm too lazy to do that.


(well, I thought I'd ask here in case anyone had an answer that was helpful)

Well I spoke to them and they advised instead of speaking to the professional you pay to help you with this go get free advice from a bunch of strangers. Then they put the phone down laughing.

HTH.

[NotAllThere]

Well I spoke to them and they advised instead of speaking to the professional you pay to help you with this go get free advice from a bunch of strangers. Then they put the phone down laughing.

HTH.

Funnily enough this site exists precisely so that people can get free advice from a bunch of (possibly unqualified) strangers, so your post isn't exactly helpful and is, in my view, overly aggressive.

In this case, the free advice is: no you must put it through your books. Talk to your accountant how best to do this.

[TykeMerc]

No, in relation to solicitors fees. I paid my solicitor out of my personal account, the defendant has now paid my costs into my business account.


But I guess I could expense them, since it was relating to an expense incurred by my business because to the defendant.

Ok, that makes sense, it's expenses incurred (even if it was via a legal action) and it's sensible to draw that money down as personal expenses with the appropriate entry in your books.

[ChimpMaster]

Why complicate matters? Just move the money into your personal account and note it as an error. It's not like you raised an invoice for payment so it's not a sales payment.

You can probably even claim interest from your company for having loaned it personal funds for those few days