Invoicing someone who is not a client

Invoicing someone who is not a client

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We are a law firm and have advised a client on a joint venture with a third party. As part of the joint venture, they have formed a new company with 50/50 ownership (between our client and the 3rd party) and as part of the agreement the new co will pay the fees of our client and the fees of the 3rd party.

My issue is whether we can invoice the new company for the fees of our client.

I believe that from a VAT/company perspective we can invoice who we like and its up to them whether they can claim it as a deduction from tax and/or reclaim VAT, but with regards the Solicitors Regulation Authority (SRA) rules regarding anti-money laundering, do we have to invoice our client who we have assessed for money-laundering? If we invoice our client with a note on the invoice to say 'payable by ABC Limited' will the new co be able to use this to reclaim VAT and deduct from profits?

I've been through the SRA Accounts Rules and can't find anything about invoicing that is helpful in this situation... Any help would be greatly appreciated!

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By ltaylor
02nd Aug 2012 11:22

Recharge Invoices

The agreement will be between the client and company regarding the payment of the invoice.

Your records should reflect the work/services that you have carried out for each of your clients i.e invoice the client for the service you provide them.

It is then up to the client to arrange for the settlement of the invoice. The client should settle your invoice and raise a VAT invoice to the company to recharge the expense.

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