Just finished a long time consuming job for which I did not bill in stages.
I have found that the director of the company draws money out of company bank, pays this money into his personal bank and then pays cash to overseas contractors.
95% of the company's turnover is overseas and that the size of his turnover is such that he would need to employ some labour, Money is drawn from his private account across the world but there is no supporting documentary evidence of the payments.
Do I accept the director's explanation ?
In previous years the company employed uk staff through paye and the employees worked overseas with the company paying hotel bills and air fares.
this is a non audit client and the work is all outside the eu.The payments are approx 10% of turnover.
I cannot afford to walk away on the other hand I don't want to end up listed as a dis honest agent and fined £50k.
Thanks for any input.
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Replies (4)
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I could not accept that explanation.
Picture yourself sitting across from HMRC during an investigation. If you sign those accounts based on that explanation then you are being a reckless as he has clearly been.
thanks
Thanks Steve, I think I know the answer to my own question it is just the thought of not getting paid after all the effort.
Surely
as soon as he draws it out and makes it available to himself privately it becomes DLA. What he does with it after that is his own affair.
Richard problem is :
I agree Richard but he claims to have incurred wage costs abroad and there is no evidence for this apart from the obvious fact that he would have to pay somebody to do the work.
thanks for interest.