I work for an organisation which it is very likely will have a company, with a new name, forming soon. It will be formed by 3 partners breaking away and forming a new company with a new name.

I cannot quote names as it is confidential.

There are set up costs, such as for a web domain and a photographer for the company brochure / website.

One invoice has been sent to the existing company. No problem there. Can be paid and recovered from the new company when it is incorporated.

Another invoice has been addressed to the new company’s name. I have been told to pay from existing company and recover later.

Technically and legally it is incorrect, right?

Thoughts?

If the partners that have told you to pay the invoice have authority in the existing company to authorise payments then I guess it’s fine, it’ll just create a loan account in each company for the payment value.

Many thanks

I have just paid for the photographer from the existing company, even though it is addressed to the new one.

An auditor would probably go nuts?