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How can you switch standing order receipts?

Switching business bank accounts

Hi all

We have a client who is a bookkeeper and receives his income via standing order from his clients. He has a HSBC sole trader business account but will now be trading under a limited company.

The problem that he faces is that HSBC have informed him that they can only switch the direct debits and standing order payments, not the standing order receipts that he is receiving. They have told him that he will need to ask his clients to change the standing order account details on their side. This would be quite time consuming for him to monitor and chase his clients. It was quite a long process chasing up the clients to set up the original standing orders in the first place!

Has anyone else experienced this type of problem? Is there any way that these standing order receipts can be transferred to the new business bank account without each individual client having to change the details? 

Thank you in advance for your help.

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13th Mar 2019 17:19

I am not sure why you think anyone on here is likely to know any more about banking practice than your client’s bank.

For what it is worth, the bank have said precisely what I would have expected them to say.

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to johngroganjga
13th Mar 2019 17:29

Snap

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13th Mar 2019 17:31

Standing Orders are instructions by the payer.

Only the payer can alter them.

Afraid you're barking up the wrong tree. You need to bark up the customers' trees.

Possible solution - keep the sole trader account open and shift the money to the company regularly. It's practical - but not great as, technically, he's borrowing the money from his company.

Too time consuming ? Too bad, I'm afraid.

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By DJKL
13th Mar 2019 17:34

I moved tenants receipts from one bank to another bank last year, afraid it was a matter of writing to them all with the new details, chasing those whose payments carried on going to old account and chasing those who failed to pay to new bank (cancelled but did not set up new)- It took about 3-4 months to get them all sorted but was easier than I had expected (there are only 24 tenants)

As far as I know there are no shortcuts, just a lot of work chasing.

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13th Mar 2019 17:41

Get them to sign GoCardless mandates in case you need to move bank again.

(Other DD providers are available. I think)

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By Mr_awol
to atleastisoundknowledgable...
14th Mar 2019 13:22

If they're taking client originated SOs and move to GoCardless they might incur significant additional fees though, surely?

If we moved to Go Cardless we'd increase our banking costs by hundreds of pounds per month, for no real benefit other than convenience IF we moved banks (which we haven't done for a great many years) or to enable us to adjust SO amounts ourselves (pointless as would still need client approval).

Ok for people taking lower volumes or amounts the difference might not be so substantial but I'm not sure I see the attraction- unless I'm missing some other benefit of moving to the DD system.

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By Mr_awol
14th Mar 2019 13:13

Could he switch banks using the 7 day switcher malarkey (may not be possible due to change of trading status)?

I was told that in the case of a switch, all outgoing SOs and DDs would be transferred and you'd need to get the customers to sort out the incoming SOs BUT that the old account would stay alive (but dormant) for three years and that any payments made into the old account would magically appear in the new one. Of course you have the danger that some people don't bother changing it and in three years time their SOs to you start bouncing.

Or just leave the old ST acc open and tell all clients to change the SO. It's hardly complicated to look at the ST bank statement every now and then and remind the clients still using the old payment details that you've asked them to change.

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