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Asked to pay invoice to different company - Order from "trading name" company

(8 Posts)
LondonExpatLife Wed 01-Nov-17 11:23:56

I have ordered some Christmas decorations from a well-known company in the area. I ordered from them last year and was pleased. This year, when I got an invoice, I was told their banking info has changed. The banking account info is for a different company name which the company I am buying from apparently is their "trading name" for the company I am suppose to now pay. I find this a bit odd. Am I being asked to pay a different company (parent company?) in order to achieve some kind of tax advantage for the company? Anyone encounter this before? Is this common in the UK? Both companies have different VAT registration and company numbers and different addresses.

AlexanderHamilton Wed 01-Nov-17 11:28:43

It sort of depends on the wording on the invoice. Has the invoice been raised under the trading name & what address details/company reg/vat reg is on the invoice.

exexpat Wed 01-Nov-17 11:32:16

I'd call to check that it is not a scam - there is a growing problem with people being asked by email to pay into different bank accounts by fraudsters:

Want2bSupermum Wed 01-Nov-17 11:34:18

I saw this all the time as an auditor. Most of the time the bank account name reads as their trading name but rules place now don't allow that. I'm working in the US and a CFO and I'm going through hell with the bank because they won't accept cheques from customers from an acquired company. We own the friggin company but can't cash checks however ACH transfers are accepted without issues.

Personally I think the increase in regulation in this area confuses people a heck of a lot more than it helps. The reason for different entities for us is that we set up a different entity for each business line. Taxes are paid on the consolidated holding company meaning all revenue and expenses are collated from the subsidiary companies and we pay one tax bill on everything.

Adarajames Wed 01-Nov-17 12:02:44

One of the glass suppliers I use does this, all legit, just the art glass side of the business trades under a different name to the double glazing side.

Want2bSupermum Wed 01-Nov-17 12:31:02

But yes call to confirm bank details. It's a very easy way to scam people which is why I HATE this legislation.

swimster01 Thu 02-Nov-17 16:35:05

I had similar when I bought a mirror but I would just call to check as suggested

LondonExpatLife Mon 13-Nov-17 11:06:15

Thanks for advice. Called company and asked for legal doc that proved affiliation or asked if I️ could pay with credit card to protect myself. Ended up paying with credit card which came through in name of company ordered from/not parent company.

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