Thanks for clarifying DB74.
The company I work for has a revenue inspection shortly. To cut a long story short we were called into a meeting by higher management and informed of the inspection. Office gossip has it that revenue are seeking payment on large purchase invoices that are past the six month due date and were not paid by my employer but yet they claimed the vat on them. The company does not have the means to pay their supplier at present as the project we are working on is still on going and the supplier is making adjustments to work they provided us with. In lieu the supplier is going to issue us with new terms and conditions of payment.
My only concern is that I have job when all this is over!