Press release

Director banned for failing to accurately account to HMRC

The director of an Italian Restaurant has been disqualified for 6 years after an investigation by the Insolvency Service.

Mohammad Iqbal Qayumkhan (Mr Qayumkhan) also known as Qayum Khan of Eyetech Solutions Limited (Eyetech) has been disqualified for six years for failing to accurately record the turnover of the company in the VAT return submitted to HMRC for the period 05/13.

The disqualification of Mr Qayumkhan is from 11 August 2016.

Mr Qayumkhan (43) has given an undertaking to the Secretary of State which prevents him from becoming directly or indirectly involved in the promotion, formation or management of a company for the duration of his ban.

The investigation found that Mr Qayumkhan failed to ensure that Eyetech accurately recorded the turnover of the company in the VAT return for the period 05/13. As a consequence HMRC made further assessments of VAT for the periods he was a director of Eyetech, 08/11 to 11/13 inclusive, leading to assessed losses to HMRC of £41,812 as calculated by HMRC inspectors, in addition to penalties of £36,587.

Commenting on the disqualification, Sue Macleod, Chief Investigator at the Insolvency Service, said:

The Insolvency Service will investigate and disqualify directors who seek to undermine the tax system by attempting to avoid their statutory obligations to HMRC and remove the protection of limited liability.

Notes to editors

Eyetech Solutions Limited (Company Registration Number 05420190) was incorporated on 9 April 2005.

The company traded from 15 Catherine Street, London WC2B 5JZ; this was also the registered office.

Mohammad Iqbal Qayumkhan was a formally appointed director between 1 June 2011 and 29 November 2013 and 15 May 2014 and liquidation. He is from Ilford and his date of birth is 2 November 1972.

The company went into Liquidation on 30 December 2014. On 21 July 2016 the Secretary of State accepted a Disqualification Undertaking from Mr Qayumkhan effective from 11 August 2016, for 6 years.

A disqualification order 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.

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Further information on director disqualifications and restrictions can be found here.

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.

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Published 8 September 2016