Director disqualified for failure to pay taxes
Robert Thompson, the sole director of Thompson Construction & Training Limited which traded out of Blaydon on Tyne and provided training and consultancy services, has been disqualified for three years and six months following an investigation by the Insolvency Service.
Mr Thompson, 56, of Blaydon on Tyne, Tyne & Wear gave an undertaking to The Secretary of State for Business, Innovation and Skills not to promote, manage or be a director of a limited company from May 2014 until 2017.
The investigation found that for more than a year Mr Thompson had failed to ensure that the company made payments to HM Revenue and Customs towards its VAT liability.
Robert Clarke, Group Leader of Insolvent Investigations North at the Insolvency Service, said:-
“The Insolvency Service will rigorously pursue traders who seek an unfair advantage over their competitors by not paying VAT or PAYE to the Government.
“If you run a limited company, you have statutory protections as well as obligations. If you fail to comply with your obligations, The Insolvency Service will investigate you and you could lose the protection of limited liability.”
The investigation also found that in the six months prior to liquidation, all of the companies trading income was paid to Mr Thompson. Instead of accounting to HM Revenue and Customs for the associated income tax by way of self assessment tax returns, as he had done in previous years, Mr Thompson chose to submit a P35 tax return on behalf of the company approximately one month prior to liquidation, thereby creating a PAYE liability which the company had no way of paying.
The company was placed into Liquidation on 12 June 2012 with an estimated deficiency to creditors of £160,965.
In giving the undertaking, Mr Thompson did not dispute that he failed to ensure that the company complied with its statutory obligations to file VAT returns to H M Revenue & Customs, to make payments in respect of VAT and that by his actions he had caused a PAYE/NIC liability to be created, leaving at least £160,315 owing to HMRC at the date of liquidation.
Notes to Editors
Thompson Construction & Training Limited (CRO Number: 06550137) was incorporated on 31 March 2008 and was placed into Liquidation on 12 June 2012.
Mr Robert Thompson signed his undertaking on 14 April 2014 and it commenced on 6 May 2014
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;
- act as an insolvency practitioner; or
- be a receiver of a company’s property.
In addition 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 at https://www.gov.uk/government/collections/information-about-company-director-disqualification
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 from:
Media enquiries only should be directed to: Kathryn Montague, Media & Campaigns Manager on 0207 674 6910 or Ade Daramy, Media Manager on 0207 596 6187.
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Ade Daramy Phone:020 7596 6187
Kathryn Montague Phone:0207 674 6910
Published: 20 June 2014
From: The Insolvency Service