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VAT refund into our business bank account

VAT refund into our business bank account

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My client has setup a UK Company but has still to open a bank account. The directors are based overseas hence the challenge of opening up a bank account.  They are trying to open a bank account but is taking more time than expected

The client wants us to receive the VAT refund into our Business Bank Account as a one off and then send the money back to them or paying some UK based suppliers 

In future, thinking of setting up a client bank account.

 

 

Replies (15)

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RLI
By lionofludesch
29th Nov 2017 18:12

What's the question?

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By tom123
29th Nov 2017 18:35

Whatever the question - I wouldn't do it.
Jim - you do tend to find these clients that ask you do do difficult stuff..

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Slim
By Slim
29th Nov 2017 18:40

I wouldn’t do it.

So hmrc can’t pay into foreign bank accounts?

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Replying to Slim:
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By Jim100
29th Nov 2017 19:02

No they cannot pay into a foreign bank account. I am just trying to find a solution. I thought there maybe a restriction for HMRC paying a refund into an agents bank accounts.

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Red Leader
By Red Leader
29th Nov 2017 18:57

Oh Jim Jim Jim .... Don't. Do.It.

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David Winch
By David Winch
29th Nov 2017 19:03

I know plenty of crooks who would just love you to be their accountant!
You are being invited to provide a banking / money laundering service for someone who is presumably going to be a new client.
Asking for trouble .....
David

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RLI
By lionofludesch
29th Nov 2017 19:09

Jim - my impression is that you can be a bit of a gullible sucker.

Try to lose that image. Try hard.

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Replying to lionofludesch:
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By andy.partridge
30th Nov 2017 10:00

To be honest I've never sucked on a gullible. Are they a bit like mint imperials?

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By andy.partridge
29th Nov 2017 22:06

Oh Jim, haven't we been here before? Time to grow a pair as they say.

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By bernard michael
30th Nov 2017 10:20

A few facts
The bank account takes longer than expected to open.(at least 3 months to date as they've submitted a VAT return)
The first VAT return show a refund
The directors are based overseas
Not very good so far
When they registered for VAT on line what excuse did they use for not having a bank account?
How did you carry out ML checks and were they OK?
What industry are they in and does it involve distance selling?
All of the above no doubt the OP has satisfied himself on ...........but

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Replying to bernard michael:
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By Jim100
30th Nov 2017 12:01

Its 100m USD company Selling IT consultancy. Headquarters based in UK. Its a client and personnel I know well indeed (and met) and yes all the checks have been carried out. I would understand the concern if they were a one man band from some notorious havens for skullduggery. Ok accepted that I should not agree to their request to use my company bank account even though it will be only one time.

They have engaged a subcontractor in the UK who is VAT registered plus incurred lot of legal fees on getting contracts set up.

They are carrying out work in numerous countries for a US based client including UK and billing is from the US with intercompany charging.

"Excuse" was bank account in process.

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By Matrix
30th Nov 2017 10:31

I don't know why you keep setting up UK companies for businesses which are clearly managed and controlled offshore. Is this the one where you are tax representative and company secretary?

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Replying to Matrix:
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By Jim100
30th Nov 2017 12:07

Matrix wrote:

I don't know why you keep setting up UK companies for businesses which are clearly managed and controlled offshore. Is this the one where you are tax representative and company secretary?

The MLR are carried out, they are not from countries where financial sanctions are imposed and these companies have employees in the UK and are paying taxes on the profit generated in the UK. Yes they probably should pay the taxes on the profit in their home country as well. No its not the one with tax representative and company secretary

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David Winch
By David Winch
30th Nov 2017 12:55

Jim
My advice is that you should not be providing bank account facilities for any client - whether they are Del Boy or (saint) Bill Gates.
That advice would be the same whether or not you have a client account.
I don't know if you are a member of a recognised professional body - if you are then I suggest you discuss this with their practice advice team.
You do seem to get involved in high risk areas as far as MLR is concerned. Be prepared for extra attention from your MLR supervisory body when they realise this. Have records of your ML risk assessments for each client & the steps you have taken to verify ID & to be aware of any possible money laundering to report.
Also be sure your PI insurance does cover what you do.
David

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By Matrix
30th Nov 2017 13:09

Just tell your client that you will arrange the VAT repayment when they have a bank account, if this is just a few thousand pounds, they are a USD100m company and are already setting up a bank account, then a short wait should not be a problem. I am not sure what they are doing for the invoice receipts and payroll, but you have received excellent advice on protecting yourself so maybe concentrate on that and leave the operational side to the client.

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