Can I pay a Ltd Co Invoice into a personal account?

Can I pay a Ltd Co Invoice into a personal...

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I have been asked to pay an invoice from a limited company - registered in September 2010 - but the owner has requested that the money is paid into thier personal bank account because of "issues".  Is this legal and if not what options do I have?

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By johngroganjga
12th Mar 2015 11:15

If the individual is the company's sole shareholder I would have no problem. If there are other shareholders you may get embroiled in an attempt by him to defraud their fellow shareholders, so I would proceed with caution.

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paddle steamer
By DJKL
12th Mar 2015 12:13

Strange as it may......

Strange as it may seem I wonder if possibly the safest route, if the invoice is not that much, is to draw cash from your bank, pay it to the director of the company and get a  signed receipt.

I, like John, would be cautious paying it into an account other than that of the company, at least with cash you have handed it over to a director of the company and the onus is on the director to deal with it correctly.

However even this might be construed by the cynical as possibly aiding and abetting, if there is a nefarious purpose, given recent controversies in the press.

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By NHGlos
12th Mar 2015 12:29

A thought as much as a comment...

My first thought here was maybe the company is in difficulty and the owner wants to extract some cash from it anyway. Putting aside any implications that may have for him/her, I would be thinking what happens if the company is actually having problems and does "go down the pan". If there's no proof of paying the money to the company, could I still be liable for the debt if the company is liquidated...?

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Replying to Westbookkeeping:
By johngroganjga
13th Mar 2015 12:42

Writing

NHGlos wrote:

If there's no proof of paying the money to the company, could I still be liable for the debt if the company is liquidated...?

You cover your self against that problem by getting your payment instructions in writing and keeping a copy.

But that does not cover you if you have a rogue individual who is defrauding his own fellow shareholders.

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By User deleted
12th Mar 2015 12:34

I wouldn't do it

If the invoice is from the company then that is who I would pay. I would send her a cheque, made out to the company, and let her decide what to do with it.

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By paras007
12th Mar 2015 12:37

Agree with BKD


I wouldn't do it either. I would write out a cheque to the company.

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