Debtors Cash

On the training courses I went on they said that to keep someone elses money is theft.

Seems odd that the debtors themselves did not identify the overpayments in their accounts. Perhaps they need a good bookkeeper!

But I believe it should be refunded as an overpayment. And think of the goodwill you may generate!

 And morally, it is the right thing to do.

There is no compulsion to repay the over payment. However as the debtor has 6 years in which to ask for their money back, then that's how long you should hold it in debtors before writing it off.

As a point of intrest, before 1/1/2002, these were considered as not taxable by the Revenue , but since then they do.

 "Quis custodiet ipsos custodes"

Are you currently showing them as negative amouints in the debtors ledger or do you have them shown in current liabilities as amounts overpaid & to be refunded?

If only the receipts and negative debtors are you are giving the compliance teams something else to get their teeth into be they VAT or CT.

Had a client in a similar position but had to persuade him that it simply wasn't his to keep. he reimbursed the customers who immediately put in a new order.

Honesty pays

your VAT invoices indicate in bold lettering that the amount involved has already been received and even that the customer should ignore the previous pro-forma invoice