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Suspicious "office services and support" invoices

Possible misappropriation of Company funds by Director

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During preparation for a VAT return I have found a series of regular weekly payments all at £1035, made by a Debit Card issued to the Operations Director (24% interest in Company). There are purchase invoices to support almost all of the payments, but from the accounts office sequential number stamp and system date I can see most of these were posted to the ledger retrospectively.

This has come to light because each invoice includes VAT at 15% despite describing the VAT element as "VAT @ 20%" on the invoice. The invoices do contain a valid VAT number and after checking VIES database the address matches the address on the invoice.

The single line item on the invoice states "office services and support". There is a mobile number and email address, however I am worried as on Googling the email address I have found same appearing on a number of escort websites and adult forums touting for business.

The sums involved are over £7000 and I am concerned that Company funds have been misappropriated.

The Director involve does not have a PA due to maternity leave, and so it was understood he would engage a temp.

Is it my place to question this? 

Replies (15)

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By KevinMcC
11th May 2018 15:41

£1,035 a week. How many hours of "office services and support" does that get you?

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By bernard michael
11th May 2018 15:44

What is your position in the company/client.?
How many directors are there ?
What is the (?) villain director and what % of the shares does he have (if any)?

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Routemaster image
By tom123
11th May 2018 15:54

I once had to fire an MD who was drawing company cash (daily), and spending a fortune at somewhere called

"Directors Lodge", which I do not recommend you Google.

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Replying to tom123:
Glenn Martin
By Glenn Martin
12th May 2018 11:31

Ha Ha Tom sone of these practice lads have never lived having to deal with the likes of that.

I bet that was an interesting meeting

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Replying to tom123:
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By chatman
17th May 2018 10:00

OK, who did not Google that?

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By Tim Vane
11th May 2018 15:57

Well, clearly the VAT invoices are invalid as they do not include the correct amount of VAT, so you need to get that sorted. Ring the number on the invoice and ask for valid VAT invoices to be supplied directly to you. Point out that they have an obligation to supply valid VAT invoices or you will have to demand repayment of the VAT element of the invoice.

If you believe funds may have been misappropriated, make a report to the appropriate senior manager or director.

Probably the least appropriate action is to post on an open internet forum.

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Replying to Tim Vane:
ALISK
By atleastisoundknowledgable...
11th May 2018 16:53

Quote:

Probably the least appropriate action is to post on an open internet forum.

Not, but most fun. Brightened up my day.

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Replying to Tim Vane:
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By ShayaG
17th May 2018 13:27

As long as the client is not identified I really don't see the problem.

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By andy.partridge
11th May 2018 17:06

Is it my place to question this?

Yes. If you don't you become part of the problem.

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By WhichTyler
11th May 2018 17:53

Perhaps the invoices are coming from an 'agency' who only charge vat on the 'services' supplied by the 'worker' (£675) but not on their commission (£90)?

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Replying to WhichTyler:
ALISK
By atleastisoundknowledgable...
12th May 2018 11:51

Good point.

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ALISK
By atleastisoundknowledgable...
12th May 2018 11:54

One of the first bkpg jobs I did as a trainee in practice was for a health studio that had cash income of £10 per client and lots of expenses for shower gel, ‘misc dvds’ & laundry costs. I asked the portfolio accountant about it. Apparently they WEREN’T a brothel - at least in 2 court cases it hadn’t been proved that they were.

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Replying to atleastisoundknowledgable...:
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By andy.partridge
12th May 2018 12:04

A good story with a happy ending. Nice.

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Nefertiti
By Nefertiti
17th May 2018 12:24

Wow your detective skills especially in tracing the email addresses to escort agencies would put Hercule Poirot to shame.
It is no secret that a lot of company directors are crooked and try to get their expenses paid via their companies over and above their salaries and bonuses.
Assuming you are their accountant, you can politely advise them that it would be difficult to process those dodgy invoices in case they got picked up by the HMRC and the company got fined.
Whether or not you choose to take this matter up with the director, you would be well advised to seek employment elsewhere because if you let this continue under your nose, you will eventually be blamed too of participation in an obvious fraud.

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By ShayaG
17th May 2018 13:30

Are there any other shareholders in this scenario? If so, you do have reason to be concerned, but be circumspect with your questioning to avoid tipping off.

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