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I am currently performing some ongoing work for a Sole Trader, where a monthly Direct Debit has been set up for the monthly fees. The Direct Debit was set up with their Business Account. Upon each successful Direct Debit, I then send out an Invoice Receipt.

The Sole Trader has now asked if the Direct Debit, for their business, can be set up with their Personal Account instead. Whilst it goes against my preference, would this be okay?

With all being fine, how should I proceed with the Invoice Receipt? Should I just place the person's name on the Invoice Receipt, since the Direct Debit will be in their name, and leave them provide the relevant details to HMRC regarding Expenses etc or should I reference the Business venture; since the work being performed is for their Business venture?

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The account your client uses to pay you is irrelevant to you, and in general you can't know whether an account is business or personal unless they tell you or show you the cheque book or similar. There's no problem with you charging the personal account unless perhaps you suspect they are trying to commit fraud or tax evasion - but that seems unlikely, normally it's when personal expenses are charged to a business that there might be a problem, not the other way round.

You should just charge whichever account you're asked to, and send out the receipt in the name of the business regardless.

  • Thanks for your reply. Are you saying that there would be no problems, my end, if my Invoice Receipt details their Business Name even though the transaction was made by their Personal Account? In essence, it being their responsibility for such explanation for the difference and not myself? – Craig Dec 2 '18 at 23:50
  • @Craig yes, assuming the work you're doing was genuinely for their business. – Ganesh Sittampalam Dec 3 '18 at 6:18
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    @Craig Unless there is a strong suspicion of (attempted) fraud, you're (presumably) invoicing the company, and they provide you a way of collecting that money. As Ganesh says, it shouldn't matter (to you) which account they use. The only slightly "odd" thing is that they let you DD out of their account, rather than them using BACS to pay into your account. – TripeHound Dec 3 '18 at 9:34

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