Ban for director who failed to make payments to HMRC and failed to keep records
Trevor Shieff has been disqualified from acting as a director for 7 years for failing to make payments to HM Revenue and Customs and failing to keep records for a failed company, ESP Powdercoating Limited, of which he was a director.
Mr Shieff’s disqualification follows an investigation by the Insolvency Service.
A Disqualification Order was made against Mr Shieff on 20 January 2016, which means that from 10 February 2016, he cannot promote, manage, or be a director of a limited company for the duration of his ban.
The company began trading in 2009 as a powder coater of alloy wheels and other metal objects, and was ordered into liquidation on 20 March 2014 by Glasgow Sheriff Court, following a winding-up petition presented by HMRC.
The Insolvency Service investigation found that Mr Shieff caused ESP Powdercoating Limited to trade to the detriment of HMRC from at least 1 January 2012 in that:
- The Company submitted six VAT returns but did not file VAT Returns for four quarters, for which HMRC raised assessments.
- At liquidation, the Company had incurred VAT liabilities totalling at least £30,881.79 and owed £30,313.27 in relation to accrued PAYE/NIC, having made no payments after 5 July 2011.
- After 31 December 2011, there are no recorded payments made by the Company to HMRC.
- At liquidation HMRC were owed at least £61,195.06.
Mr Shieff also failed to ensure that the Company maintained and/or preserved complete and full accounting records, or he failed to deliver all such records that did exist for the period 1 January 2012 to the date of liquidation on 20 March 2014.
As a result, it is not possible to verify the full and true nature of the Company’s business and operations, establish the date of cessation of trading activity and establish the identity and value of the Company’s assets. In the absence of any VAT or PAYE records, it is also not possible to establish the full and true amount due to HMRC in relation to VAT and PAYE/NIC.
It is also not possible to establish the identity of payees of, and reasons for, receipts into the Company’s bank account totalling £60,568.77 during the period 31 December 2011 to 30 December 2013 and to establish the identity of recipients of, and reasons for, payments from the Company’s bank account totalling at least £34,565.61 during the period 31 December 2011 to 30 December 2013.
At the date of Liquidation, ESP had assets of £1,821 and liabilities of £79,037.
Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:
Directors who do not comply with their obligations to HM Revenue and Customs and do not maintain adequate records can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
Mr Shieff failed to ensure that the companies complied with their statutory obligations As a result HM Revenue and Customs are owed a substantial amount of money. Taking action against Mr Shieff is a warning to directors to take their duties seriously.
Notes to editors
ESP Powdercoating Limited (CRO SC276978) was incorporated on 3 December 2004. Its registered office was 2 Fitzroy Place, Glasgow, Lanarkshire, G3 7RH. It traded from Unit 2A, 30 Stronend Street, Glasgow, G22 6AR. Mr Shieff was the only director at the time of Liquidation.
On 13 February 2014, HM Revenue & Customs presented a petition to Glasgow Sheriff Court to wind up the Company. A winding up order was granted on 20 March 2014.
Trevor Shieff is of Glasgow and his date of birth is 24 April 1967.
The Disqualification Order was made by Sheriff Deutsch at Glasgow Sheriff Court.
The Secretary of State was represented by Miss Russell (solicitor) of Burness Paull LLP and the defendant did not appear and was not represented.
A disqualification order or undertaking has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Further information on director disqualifications and restrictions is available.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
All public enquiries concerning the affairs of the company should be made to: Cheryl Lambert, Head of Outsourced Investigations, Investigations and Enforcement Services, The Insolvency Service, 3rd Floor, Abbey Orchard Street, London SW1P 2HT. Tel: 0207 596 6117. Email: Cheryl.Lambert@insolvency.gsi.gov.uk
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Published: 11 March 2016
From: The Insolvency Service