Client owns company A and has recently set up a sole trader B.
Sole trader B has zero credit history so none of the builder's merchants will allow them credit. Company A has a trade account so the client has used this account to buy quite a lot of materials for the start up. All the VAT invoices are in A's name but all the payments are coming out of B's new bank account.
Would it be acceptable for A to re-invoice B for all the materials purchased and contra the sales/purchases in their books?