Moving Invoices to a new company

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We have a company that has asked us to move all there outstanding invoices into there new company they have set up as they will be closing down the company. Can this be done? On company house the information is that the old company has 1 director and the new company has a different director. There is also another company that both these directors plus another own together so they are all linked.  

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By David Ex
22nd Feb 2022 16:21

Can this be done? Yes. Should it be done/is it sensible? Who knows.

Technically, it’s a legal question about assignment of debt.

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paddle steamer
By DJKL
22nd Feb 2022 16:34

Why does customer not sell items to their new company, or cross bill it for the services and then use the funds to pay you?

Whilst you can issue credit notes to cancel the invoices if the customer does not process these but again processes the fresh invoices in the newco they will then claim input vat twice (once in each company)

Not sure I would oblige, you made no vatable supply to newco.

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By Truthsayer
22nd Feb 2022 16:42

Is this company a supplier or customer? Either way, I would refuse to do this without further information or considering the legal position. If the goods or services were not supplied to/from new company, the invoice cannot go to/from them either. That would be false accounting.

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