Contractor Invoice payment to overseas personal acc?

[everfor]

I given a contract to one of fellow back in india and he invoiced to me with detailed work info and for payment details, he has given his personal bank account.. From limited company, Is it ok if i pay it to his personal account through bank transfer? Please advise??

 

[Ian J]

No. If you have a contract from XYZ Ltd you need to pay XZY Ltd. If they were to go bust the liquidator could take proceedings against you for non payment

 

[Energise Accounting]

No as Ian said you are paying the business and not the person

 

[everfor]

No as Ian said you are paying the business and not the person

Is there alternative way? I have to make the payment. Looks contractor is a freelancer and he don't have the company..

 

[Ian J]

Is there alternative way? I have to make the payment. Looks contractor is a freelancer and he don't have the company..

I don't understand????

Limited companies are deemed to be separate legal entities from private individuals so if your contract is with a limited company you must pay that limited company

 

[Voicebooth]

Is your contract with an actual Limited Company, or an individual?

 

[MyAccountantOnline]

I given a contract to one of fellow back in india and he invoiced to me with detailed work info and for payment details, he has given his personal bank account.. From limited company, Is it ok if i pay it to his personal account through bank transfer? Please advise??

Are you saying you operate via a limited company and want to make a payment to a subcontractor in India to his personal bank account?

 

[Energise Accounting]

if a Ltd company has done the work you pay the ltd company bank a/c, if a individual (sole trader) has done the work you pay the business bank a/c. however, a sole trader may use his personel bank a/c to receive payment. I would not trust a Ltd company who asks for payment into a personal bank a/c.

 

[everfor]

Are you saying you operate via a limited company and want to make a payment to a subcontractor in India to his personal bank account?

Yes you are right.. Please advise

 

[everfor]

Is your contract with an actual Limited Company, or an individual?

It's a individual...

 

[kevin.doran]

Make the payment - it's fine.

 

[Payments Guy]

If the contractor has stated these personal details on his invoice, just pay it. Make a note, and make sure that you keep a copy.

 

[Voicebooth]

It's a individual...

Then it should be fine to pay to his individual account, since that is who you have the contract with - he is in effect a freelancer, how he handles his finances is entirely up to him.

 

[Karimbo]

i've worked with a few plc clients. They require me to confirm our banking details in a company letterheaded paper, signed by a director.

FACT is BACS payments do not care for payee name. You can use any details you like for payee and it will be paid to the account numbers and sort code you entered even if the payee name does not match.

As long as you have the paper trail to prove that your supplier has instructed you to pay into that "personal" account, that should meet any auditors needs.