I couldn't tie up the invoices and bank receipts so called the client in to work through it, then the truth came tumbling out.
Client's daughter is moonlighting form her PAYE job and getting dad to invoice her client through his sole trader business. The invoices description wrongly give the impression the work has been done by dad (he is a tradesman, she is a software developer).
Her client pays the invoice into dad's business bank account. He transfers the money to his personal bank account, keeps 10% and pays the rest to her. She is not registered for self-assessment, but dad reckons she earns £50k in her PAYE job. He is a basic rate tax payer.
He wants to help her out because she is his little girl and has money problems. He had a massive health scare last year and should be taking it easy.
The intended 'fraud' is pretty obvious. How would you handle the next steps?