Misplaced VAT repayment 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

[paulb2905]

Re: Misplaced VAT repayment against personal debt...??!!

Hiya, yes contact the bank and inform them that this has been incorrectly assigned to a personal account and should be assigned to the business account to start with.

See where that goes.

If you continue to have issues repost but you would be looking to contact the FOS ultimately.

[TUTTSI]

Re: Misplaced VAT repayment against personal debt...??!!

Stanton has another thread also http://www.legalbeagles.info/forums/...ad.php?t=25686

[paulb2905]

Re: Misplaced VAT repayment 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