Are multiple VAT payments for a return allowed?

Are multiple VAT payments for a return allowed?

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Hi all,

I'm a sole-trader with two businesses. As I'm VAT registered (personally) I have to charge VAT on my sales from both businesses. However, each business has its own bank account.

I have figured out a way of combining the returns into a single digital submission. No problem there.

However, I would really like to pay the bill in two parts on the same day... one payment from business A and the other from business B, the total being the full amount of the return. Keeps the books tidier for each business.

Does anyone know if this is or is not allowed? In theory, I reckon the payments would just get allocated to the return for the period. But I don't know for sure and don't particularly want to incur the wrath of The Revenue or risk unallocated payments floating round the ether. I haven't successfully managed to contact the uncontactable HMRC as yet to ask them.

Thanks in advance.

Steve

Replies (8)

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stonks
By WinterDragon
03rd Feb 2024 10:20

I'm afraid you're not allowed to do that. the VAT Payments Act 2003 defines this sort of activity as Money Laundering and the last client I had that did this was sentenced to thirty years of hard labour sorting shoeboxes full of receipts.

Not really, you'll be fine. Just pay on time/use the correct reference and there shouldn't be any wrath from HMRC.

Thanks (4)
Replying to WinterDragon:
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By squawk7600
03rd Feb 2024 10:33

haha, you bar-steward... you had me going :-)
Thanks so much for the help
S.

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Replying to squawk7600:
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By FactChecker
03rd Feb 2024 14:36

Good to see the fear of HMRC hasn't dulled the sense of humour required when dealing with them.
The other obvious alternative (if you're remotely concerned at the wrong triggers being set by their wondrous software algorithms) would be for the full amount to be paid by business A, and for business B then to reimburse that loan immediately (with supporting paperwork).
But WinterDragon is right, money-laundering is only something that HMRC concern themselves with when it applies to from where you acquired your funds ... they don't give a flying fig when the loot is being directed to their coffers!

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Replying to FactChecker:
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By squawk7600
03rd Feb 2024 15:57

Thanks for the reply.
Yes that's what I'm doing right now, but it kinda muddies the water for my otherwise straightforward and clean bookkeeping.
I'll have a go at the double payment next quarter and .... will never be seen again!
Cheers,
S.

Thanks (1)
Replying to FactChecker:
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By frankfx
03rd Feb 2024 16:26

FactChecker wrote:

Good to see the fear of HMRC hasn't dulled the sense of humour required when dealing with them.
The other obvious alternative (if you're remotely concerned at the wrong triggers being set by their wondrous software algorithms) would be for the full amount to be paid by business A, and for business B then to reimburse that loan immediately (with supporting paperwork).
But WinterDragon is right, money-laundering is only something that HMRC concern themselves with when it applies to from where you acquired your funds ... they don't give a flying fig when the loot is being directed to their coffers!

Flying Fig.

Not sure the late Lester Piggott, Flat Jockey, settled his tax liabilities and penalties.
With a cheque drawn on a bank which he had failed to disclose when under investigation.
Sharp - eyed officer with an eye for detail.

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Replying to frankfx:
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By FactChecker
03rd Feb 2024 17:56

Love it!

Mind you, yet another one for the "And just how is digitisation going to improve tax collection, Mr Harra?" files.

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VAT
By Jason Croke
03rd Feb 2024 17:08

I've got clients who pay their return via two different bank accounts, as long as you use the VAT number as reference then not an issue, HMRC will just alocate payment to VAT account and job done..

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Replying to Jason Croke:
DougScott
By Dougscott
03rd Feb 2024 17:28

Jason Croke wrote:

I've got clients who pay their return via two different bank accounts, as long as you use the VAT number as reference then not an issue, HMRC will just alocate payment to VAT account and job done..

Don't bet on it. A client of mine paid their CT61 tax by bank transfer. HMRC allocated it to the company's CT account instead of the correct account and as the Company is currently loss making and submits NIL CT600s the clever people at HMRC refunded my client by cheque. When I rang HMRC they insisted my client had put the wrong reference on his payment and in any event they couldn't cancel the cheque and couldn't transfer funds from the CT account to the CT61 account. So I sent them a letter with a copy of the clients bank statement which showed the correct CT61 payment reference and the crossed through cheque and said the next letter would be a request for compensation if they didn't clear my clients CT61 account immediately. I haven't heard from them since.

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