Failure to address companies’ tax matters results in director disqualification
Scott Thomson Meikle, the director of Kelvingrove Media Limited and Kelvingrove Consulting Limited, has been disqualified as a director for five years for failing to ensure the companies complied with their statutory obligations to submit timely tax returns and pay amounts due to HM Revenue & Customs.
The two companies also traded at risk and to the detriment of HM Revenue & Customs.
Mr Meikle gave an undertaking to the Insolvency Service not to manage or control a company for 5 years until 2020. Mr Meikle’s disqualification commenced on 16 October 2015.
In respect of Kelvingrove Media Limited:
- Mr Meikle failed to ensure that returns and payments were submitted to HM Revenue & Customs from 7 July 2011 until the liquidation on 23 April 2013; this caused a liability of £164,717 to accrue
- from 31 March 2011 to liquidation the amount due to HM Revenue & Customs increased by £117,339 whilst the amounts due to the Company’s other creditors were reduced by £124,399
In respect of Kelvingrove Consulting Limited:
- Mr Meikle failed to ensure that returns and payments were submitted to HM Revenue & Customs from 7 March 2012 until the liquidation on 23 April 2013; this caused a liability of £109,306 to accrue
- from 31 July 2011 to liquidation the amount due to HM Revenue & Customs increased by £37,234 whilst the amounts due to the Company’s other creditors were reduced by £14,065
The insolvency Service investigation found that from 1 January 2012 until the date of liquidation Kelvingrove Media Limited, together with Kelvingrove Consulting Limited expended at least £709,722 of which £341,503 was paid to Mr Meikle or for his benefit, with no payments being made to HMRC.
Commenting on the disqualification, Robert Clarke, Head of Company Investigations at the Insolvency Service, said:
The Insolvency Service will rigorously pursue traders who seek an unfair advantage over their competitors by not paying VAT and corporation tax 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.
Notes to editors
Kelvingrove Media Limited (CRO No. 07188685) was incorporated on 15 March 2010 and its registered office was 76 Front Street, Prudhoe, Northumberland, NE42 5PU.
Mr Meikle’s date of birth is 29 April 1971 and he resides in County Durham.
Mr Meikle was the sole director of the Kelvingrove Media Limited from 14 March 2011 until the Company ceased trading. The Company went into Liquidation on 23 April 2013 with an estimated deficiency of £256,767.
Kelvingrove Consulting Limited (CRO No. 07310631) was incorporated on 12 July 2010 and its registered office was 76 Front Street, Prudhoe, Northumberland, NE42 5PU.
Mr Meikle was a director of the Kelvingrove Consulting Limited from 31 July 2010 until the company ceased trading. The Company went into Liquidation on 23 April 2013 with an estimated deficiency of £96,839.
On 25 September 2015, the Secretary of State accepted a disqualification undertaking from Scott Thomson Meikle, effective from 16 October 2015, for a period of 5 years.
The matters of unfitness that Mr Meikle did not dispute in the disqualification undertaking, were that:
While a director of Kelvingrove Media Limited and Kelvingrove Consulting Limited, I failed to ensure that the Companies complied with their statutory obligations to submit timely returns and pay amounts due to HM Revenue & Customs.
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: 26 January 2016
From: The Insolvency Service