Electrical director disqualified for short-circuiting HMRC
Peter Addinall, a director of A.E.C. (Lincoln) Ltd, an electrical installation company, went into liquidation in June 2013 owing a total of £186,218 to creditors, has been disqualified from acting as a director for 6 years for failing to make sure the company’s tax affairs were in order.
Peter Addinall, 61, of Lincoln, was the director of the company from August 2000 to liquidation and his disqualification follows an investigation by the Insolvency Service.
The investigation found that on 31 January 2013, HMRC gave the company notice that immediate security of £105,532 was required failing which it would have to cease charging VAT. Security was not given and the investigation revealed that between 21 April and 19 June 2013, the company issued 9 invoices which displayed no VAT number but on which £10,025 VAT had been charged, none of which was paid to HMRC.
Also, between 1 April 2009 and 31 March 2013 which covered 16 VAT quarters, A.E.C. (Lincoln) Ltd failed to submit VAT returns for 5 quarters, 10 returns were late and only one was sent in on time.
VAT arrears at the date of liquidation were £116,299 and tax arrears covering the 2009/2010 to 2013/2014 tax years were £62,760, making HMRC the major creditor, being owed £179,059 out of £186,218.
Commenting on Mr Addinall’s disqualification Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:
Our investigation revealed Mr Addinall failed in his responsibilities as a director to deal with the company’s tax affairs. These abuses of the tax regime which impact on HMRC, other traders and customers alike, will not be tolerated.
Notes to editors
MVA Logistics Ltd was incorporated on 21 September 1999 and changed its name to A.E.C. (Lincoln) Ltd on 8 August 2000 (Company Registration Number 03845259).
A.E.C. (Lincoln) Ltd traded from Unit D, Dowding Road, Allenby Road Industrial Estate, Lincoln LN3 4PA.
Mr Peter Addinall was a director of A.E.C. (Lincoln) Ltd from 1 August 2000 to 26 June 2013 (the date of liquidation).
An Undertaking banning Mr Addinall from being a director for 6 years, to be effective from 23 November 2015, was accepted by the Secretary of State on 2 November 2015.
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 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.
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Published: 27 November 2015
From: The Insolvency Service