Director Disqualification for Six Years After £179k Tax Debt
The Insolvency Service publicises a recent director disqualification due to HMRC debt.
Disqualified director, Peter Addinall, was the sole director of A.E.C. (Lincoln) Ltd when it went into liquidation in June 2013. He received a director disqualification term of six years, for failing to keep his company’s tax affairs in order, showing the serious consequences of HMRC Debt.
According to a press release from the Insolvency Service Mr Addinall’s electrical installation business owed £179,059 to the taxman, made up of both VAT and PAYE. As a result of this, his company was placed into Creditor’s Voluntary Liquidation on 26 June 2013.
Including the tax debt, Mr Addinall’s company owed creditors a total of £186,218.
Comment from NDP on this director disqualification case
This is not an unusual outcome from an Insolvency Service investigation such as this and it is not surprising that the Secretary of State brought director disqualification proceedings when the debt to HMRC was so large (only £7,000 of the overall debt was not owed to HMRC).
The Insolvency Service investigation found that in January 2013, HMRC gave the company notice that it must pay immediate security of £105,532.00, failing which the company would have to stop charging VAT.
However, Mr Addinall did not pay the security and continued to charge customers VAT, without paying this collected VAT to HMRC. This added another £10,000 to the VAT debt.
The Insolvency Service press release also states that Mr Addinall failed to submit VAT returns or submitted them late. When A.E.C. (Lincoln) Ltd was liquidated, the VAT debt stood at £116,299.
The press release also includes comments by Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service:
‘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.’
This investigation and director disqualification highlights that non-payment of HMRC debt is, in our experience as specialists in director disqualification, usually sufficient grounds for director disqualification proceedings to be brought.
Talk to Specialists in Director Disqualification
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Please contact us or call us today on 0121 200 7040, or email a copy of the letter that you may have received from the Insolvency Service to us at email@example.com. We are more than happy to have an initial no obligation/no pressure chat with you.