A Ltd Co (Co A) has received as normal an invoice for another Ltd Co (Co B) for services rendered. They have deducted the CIS in the normal way but the director of Co B says their bank account has been closed and could the cheque be written out to him. So whilst the paper trail up to that point is absolutely fine, what are the implications for Co A writing the cheque to the director?
On checking Cos House it does look like Co B is about to be struck off as whilst it is stating its still "active" the accounts and Annual return are well overdue.
Replies (5)
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Risk?
I wonder what Co A's position is if Co B is insolvent?
Is there an ongoing relationship with Co B's diector(s)?
I'd be tempted to send a cheque to the company as previously. As best the situation is murky so why lay yourself open to involvement in something you might wish you hadn't?
Not A's problem
Cheque should be made payable to Company B, end of story. If B's director wants to try and bank it in his own account then he needs to discuss that with his bank. (And don't even consider a request to settle the invoice in cash :¬) )