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Invoiced by unregistered business (CRO)

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  • 10-05-2014 7:00pm
    #1
    wazzoraybelle
    Registered Users Posts: 659 ✭✭✭


    Any opinions on this appreciated.

    We recently had some work done and were invoiced. While we are disputing the invoice ( and receiving legal advice), on many grounds, something about the invoice has aroused my curiosity. While the invoices vat number corresponds with the person who carried out the work, the business name does not, nor is the business name registered on the CRO website. The invoice asks that the cheque for the amount is made out in the persons name not the business name.

    I am curious as to whether the invoice is indeed a valid one, but also why would someone operate in this way.

    While our legal representative is great, she is also incredibly expensive and she has her plate full at the moment with other issues surrounding the works for which the invoice was issued. I'd be grateful for any input before we consider bringing this to her attention.

    Thanks

    Wazzo.


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    #2
    Pro Hoc Vice
    Closed Accounts Posts: 6,087 ✭✭✭Pro Hoc Vice


    Seems legit, the vat number is real, it is the vat number of the person, who carries on business under the name and style of something else. Small sole traders often do not register as a limited company or a business name. In fact the fact that he says make cheque out to him just proves his business is him a sole trader.

    While a sole trader is legally obliged to register a business name, it could be argued that he is not trading under a business name at all. In checking with CRO did you check limited liability and business names.


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    #3
    mickdw
    Registered Users Posts: 23,276 ✭✭✭✭mickdw


    As a sole trader with a registered business name, this seems dodgy.
    A sole trader does not need to register a business name but then they must trade as simply their own real name. If using a business name, that must be registered. Also to get a bank account in that business name, you need the registration cert for the business name so it would appear this person has not registered the name they have used.
    I would sort out the dispute re costs or whatever first then if you agree to pay an amount,
    query the business details. If they want cheque made out to personal name, get them to produce invoice from same name.


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    #4
    wazzoraybelle
    Registered Users Posts: 659 ✭✭✭wazzoraybelle


    I've checked the CRO site for both company and business both past and present, no such business exists. I have found out he has been using that business name for a few years.

    Our contract is with the person in his own name.

    I have checked the VAT number and it definitely belongs to the person. And the first we heard of this unregistered business name was when we received the invoice, this invoice was issued after a dispute had arisen.

    I suppose what I would like to know is, as we have no written contract with this unregistered business name (only the person himself), are we legally entitled to ask the person to reissue an invoice in his own name?

    Again, we have engaged a solicitor with regards the quality of the works for which the invoice was issued, I'm just trying to ascertain whether this is something worth bringing to her (considerably expensive) attention.

    Thanks again,

    Wazzo


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    #5
    mickdw
    Registered Users Posts: 23,276 ✭✭✭✭mickdw


    Do you have an accountant?
    I can't see a phone call costing anything.
    I cannot see how you can write a cheque out in a person's name to settle an invoice from a business. Why would you?
    You could send cheque in business name. Why they come asking for cheque in persons name, ask them for invoice to reflect this.


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    #6
    wazzoraybelle
    Registered Users Posts: 659 ✭✭✭wazzoraybelle


    Thanks,

    No, we don't have an accountant. We are not a business. We are awaiting a report into the quality of the service provided by this person before we make a decision on payment (again under legal advice). This invoice has been issued for quite some time however, which leaves us in a legally precarious position, my thinking is that if the invoice is invalid and needs to be reissued then our position might be that bit less precarious as the sum would no longer be overdue.

    Wazzo


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