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Where Taxpayers and Advisers Meet

Company income?

Chanmuganathan
Posts:144
Joined:Wed Nov 24, 2010 2:39 pm
Company income?

Postby Chanmuganathan » Wed Mar 07, 2018 5:54 pm

My client customer refused to pay the consultancy fees to his Ltd company but paying to his personal bank account. Would that be possible to treat this income as for company?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Company income?

Postby robbob » Wed Mar 07, 2018 6:54 pm

If the contact is between a company and another company there is no reason for funds to be paid to director. The request suggests the agreement is between the individual director and the end customer.
Can't think i have ever had a scenario where this has happened where the engaging company knew they where engaging another company from the start and then demanded funds be transferred to the directors bank account - that makes no sense,

Chanmuganathan
Posts:144
Joined:Wed Nov 24, 2010 2:39 pm

Re: Company income?

Postby Chanmuganathan » Thu Mar 08, 2018 4:03 pm

Sorry, I wasn’t very clear. the client is proving consultancy services to various clients through her limited company for many years. One particular overseas charity doesn’t want to engage/contract with the client company but insisted to engage her as a consultant and paid to her private bank account.
Can this income treated as her company income rather than her own as she hasn’t got the choice, Is a declaration of trust would do the trick?
.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Company income?

Postby bd6759 » Thu Mar 08, 2018 6:54 pm

Can this income treated as her company income rather than her own as she hasn’t got the choice, Is a declaration of trust would do the trick?
No. The contract to provide the services was between her and client. It is her income.


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