I sent my application - Discretionary leave to remain on 23rd Dec , I got my confirmation from HO dated 29th Dec and 2 wkd on money was not taken from account. On 16th Jan I received my application back saying they failed to get money from my account. My account did not have any restrrictions and when I went to my bank they said they cannot see why the HO failed to get money from my account. I have re sent my application andy worry is ; will the H O regard this as intime application? I have even included a letter from my bank confirming my balance as well as a photocopy of my card to confirm that the details given were collect. Please advise.

If whatever you have mentioned is correct, then they must regard the application as made from the date you first sent it to UKBA.

I wonder though what kind of discretionary leave you applied that you are concerned about about it being "in time".