VAT repayment misplaced against personal debt!!

[Stanton]

Hi all,

After some advice if possible:

In short, my LTD company recently had a VAT repayment of circa £3000. This was the first payment Ive had from them, and unfortunately they held my old Barclays Business bank accnt details, which was me T/A xxxx i.e a sole trader.
Also with barclays, I defaulted on a 5k business loan which is a personal liability as I was a sole trader at the time.

Basically after 2 weeks of tracking and tracing, Barclays have taken the mis-placed 3k repayment from HMRC which was meant to be for the Ltd company, and placed it against the debt I have with them, which is currently under an arrangment with one of their in-House collection departments.

SO, where do I stand. Logic tells me the payment was for a sperate legal entity, and as such these is an illegal transfer by barclays....??

Any help is greatly appreciated,

Craig

[Sapphire]

Re: VAT repayment misplaced against personal debt!!

Hi Stanton, I have flagged up your post for attention, hopefully someone in the know will pop along and help you sometime today.

[Stanton]

Re: VAT repayment misplaced against personal debt!!

Thank you

[TUTTSI]

Re: VAT repayment misplaced against personal debt!!

Ouchy, might be a tad too late. You must phone the Revenue/VAT office immediately and tell them your bank account has changed and ask them to recall the repayment.

There may well be a special form on the VAT section to complete for change of details. It is a great pity that you did not inform them of your new bank details before this happened.

Try this form, which you can down load online http://customs.hmrc.gov.uk/channelsP...E_PROD1_028516

Hi all,

After some advice if possible:

In short, my LTD company recently had a VAT repayment of circa £3000. This was the first payment Ive had from them, and unfortunately they held my old Barclays Business bank accnt details, which was me T/A xxxx i.e a sole trader.
Also with barclays, I defaulted on a 5k business loan which is a personal liability as I was a sole trader at the time.

Basically after 2 weeks of tracking and tracing, Barclays have taken the mis-placed 3k repayment from HMRC which was meant to be for the Ltd company, and placed it against the debt I have with them, which is currently under an arrangment with one of their in-House collection departments.

SO, where do I stand. Logic tells me the payment was for a sperate legal entity, and as such these is an illegal transfer by barclays....??

Any help is greatly appreciated,

Craig

[Stanton]

Re: VAT repayment misplaced against personal debt!!

Hi thanks for the reply, but this is what the last two weeks have been spent doing. HMRC done a BACS trace, which I have a copy of, which shows the ammount going to my old account.
I have in the meantime ammended my bank details with them. for the LTC companies account.

I have also been in constant contact with Barclays who on the whole have been helpful in tracing the funds (they said innitially they couldnt trace it, until I sent a copy of the BACS trace to them), until this morning when the woman in a collections department smugly told me it has been sent to the loan account I have defaulted on.

I explained that the funds where to xxx LTD, and that is in no way related to my PERSONAL affairs (that being the account of a sole trader), she took the stance of, it was funds into the account and basically they can do with it as they see fit as it wasnt a transfer error on their part. I gave her the analogy of a mistaken transfer from Joe Public with a HSBC/Natwest/whatever account, nothing to do with me or my company, or indeed Barclays, and she couldnt answer that!

Basically she said they wont return the transfer, I said it wasnt open to their opinion or choice, and was a matter of law. She said I need to proove the funds werent intended for me personally, her argument being that HMRC had THESE details, therefore at some point in time the funds were liable to me personally. Now what?! Best I can think to do is send a copy of the letter I have from HMRC which states the transfer was intended for xxx LTD as opposed to me trading as xxx.

The annoying thins is, i had arrangment set up on this loan account paying £xxx each month for the next 3 months, then by which time I would have sufficient to pay the remainder in 1 lump sum. Theyve scuppered that plan, as the 3k repayment from HMRC, or lack of it, will largely effect cash flow of the business, and when that happens the first thing to suffer is my wage! catch 22! twats!

[paulb2905]

Re: VAT repayment misplaced against personal debt!!

I would say that you visit the branch, and speak with the manager. Take in your evidence of payment to the Ltd company by HMRC. Explain clearly that HMRC had the details of your account from the time you were a Sole Trader and that since you incorporated (became Ltd) either HMRC or yourself had failed to update the a bank details of your Ltd account. Consequently they should either REFUND the money to HMRC OR transfer the money into you Ltd a/c.

If they dont resolve this it is called Misappropriation of Funds (or Fraud) and you are entitled to contact the police - i would threaten to do this right there and then if they dont resolve the matter - you will need the police to give you a crime number so you can report it to Report a fraud | Action Fraud

Ill post this on the correct thread if it kills me!!!!!!!!!!!!!!! AAAAAAAAAAAAAAh