Ltd company invoicing shareholders sole trade business

Customer wont deal with the Ltd Co. ( history with one of the directors who is an ex employee) (Ltd Co has 2 shareholders, 1 director, many customers)

One of the shareholders has performed the work via his sole trade business.

Sole trader has contract with customer.  Sole trader invoices customer. Customer pays sole trader.

ABC Ltd then invoices the sole trader and the income is brought into the Ltd Co.

Sole trader accounts then show sale and expense which match.

It just seems wrong doesn't it?  Do you agree? What (how much) am I missing here?

Thanks

Emma

Comments
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'It just seems wrong doesn't it?'

neileg |

Hasn't this question been posted before?

Euan MacLennan |
Euan MacLennan's picture

Is this VAT evasion perhaps?

Phil Rees |
Phil Rees's picture