Campbell Dickson, former director of Caledonian Skye Ltd, has been disqualified from acting as a company director for four years. His company, which traded as The Portree Hotel, went into liquidation in June 2023 owing more than £400,000 in unpaid VAT to HM Revenue and Customs (HMRC). Between May 2022 and May 2023, Caledonian Skye Ltd paid only £133,654 of the £574,238 VAT due. The shortfall triggered an Insolvency Service investigation, resulting in Dickson’s director disqualification for unpaid VAT.
Was this an isolated case?
No. Dickson had previously run two similarly named companies which also failed with substantial tax debts. Together, the three companies owed HMRC more than £1.7 million:
- Caledonian Skye Limited – entered administration in November 2019 owing £364,779
- Calcam Skye Ltd – wound up in May 2022 leaving £789,670 unpaid
This pattern of repeated failures and unpaid Crown debt was a key factor in the Insolvency Service’s decision to implement a director disqualification investigation. This resulted in a 4 year ban, preventing him from being a director or his being involved in the promotion, formation or management of a limited company business for the period of the ban, without the permission of the Court.
What did the Insolvency Service and HMRC say?
Neil North, Chief Investigator at the Insolvency Service, commented:
“Campbell Dickson has been the director of consecutive companies with similar names that have failed, leaving hundreds of thousands of pounds in tax owed to HMRC each time. Directors have a firm duty to ensure they deal properly with tax matters and pay what is due.”
Richard Hopwood, Head of Insolvency at HMRC, added:
“We are determined to allow reputable businesses to thrive which is why it is crucial we work closely with the Insolvency Service and other partners to take action against anyone that undermines the tax system.”
Neil Davies comments about the seriousness of unpaid Crown Debt
“Unpaid Crown Debt at liquidation is treated with the utmost seriousness by the Insolvency Service and HMRC. Directors who allow tax liabilities to build up and remain unpaid face a real risk of director disqualification. This case demonstrates that repeated failures to meet VAT obligations will not be tolerated by the authorities, and it is no surprise the director was disqualified for 4 years.”
Directors who receive correspondence from the Insolvency Service should seek advice immediately. At NDP, our director disqualification solicitors specialise in defending directors under investigation, challenging proposed undertakings and protecting reputations. Early intervention is critical.
Not every case of Crown debt results in a director disqualification. There often are good and acceptable reasons why the Crown is owed tax at liquidation. These reasons need to be explained coherently and in context to the Insolvency Service when the conduct of the director is investigated.
A similar pattern arose in a recent case resulting in a 6‑year director disqualification for abusive phoenixism, where the director failed to pay significant VAT and PAYE liabilities across two connected companies.
How can NDP’s director disqualification solicitors help?
If you are a company director facing investigation for director disqualification for unpaid VAT or other Crown debts, our director disqualification specialists at Neil Davies & Partners can help. We provide clear, strategic advice whether you are responding to an initial letter from the Insolvency Service, negotiating an undertaking, or preparing for court.
We have a strong record in convincing the IS to drop their investigation or reduce the length of a ban. Take a look at some of our testimonials.
Contact us, or call us on 0121 200 7040, today for a confidential, no obligation discussion. We understand the pressures directors face and know how to defend their positions effectively.
Director Disqualification FAQs
What is director disqualification for unpaid VAT?
It is a ban imposed by the Insolvency Service when directors fail to meet VAT obligations, often lasting several years.
How long can a director be disqualified?
Disqualification can range from 2 to 15 years depending on the seriousness of the misconduct and repeated failures.
Can directors defend against disqualification?
Yes. Specialist solicitors can challenge director disqualification undertakings, negotiate reduced bans, or convince the Insolvency Service to drop investigations.
Why is unpaid Crown debt taken seriously?
Because it undermines the tax system. HMRC and the Insolvency Service treat unpaid VAT at liquidation as a priority enforcement issue.
