Client on the fiddle

Moobag Registered Posts: 59 Regular contributor ⭐
I have a client who has claimed VAT on a purchase that never was. He sends me his paperwork and in this paperwork he had told me of a chq he had written and gave me an invoice to go with it.

He is on cash accounting so I had no reason to believe that there was any thing wrong. I did his bank rec and realsied that this cheque was unreconciled. I advised him of this and he said that it shouldn't have gone through he just forgot to tell me!

I advised him that we needed to give the VAT back however if we did this then he would owe money and not be getting a rebate like he was planning. I have told him on numerous occasions that it needs to be sent back but he wont listen.

Does anyone think that I need to report it to SOCA, it's not a small amount of money the VAT was about £3k.

He also had a lot of missing invoices and when I put them on Sage as T0 and didn't claim the VAT back I was told to re do the entries and claim the VAT back even though we had no invoices!

I have now decided not to act for them as I don't feel that I can do my job properly.

any advice greatly appreciated.


  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    Yes, I would be making a report.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I agree with Dean. Report it now.
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