Barry and Elena McColgan, who were directors of Financial Management for Schools Limited, have been disqualified for eight years and three years six months respectively, after they failed to ensure the company registered with HMRC for VAT and PAYE/NIC.

They also caused the company to trade to the loss of HMRC from 1 July 2005 until November 2014 in respect of VAT and from 22 May 2009 at the latest to November 2014 in respect of PAYE/NIC.

At the time of liquidation HMRC were owed an estimated £134,438 in VAT and £35,369 for PAYE/NIC.

Robert Clarke, head of company investigations at The Insolvency Service, said: ‘Company directors have a duty to ensure businesses meet their legal obligations, including registering for and paying taxes. Deliberate neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services.

‘The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position of trust.’

HMRC background note:

Most businesses pay their taxes, but when a business goes under, the public purse may be left with large irrecoverable tax debts. HMRC, like any other creditor, has a duty to work with insolvency practitioners to work out whether the directors acted correctly at all times.

From 6 April 2012, HMRC can require employers to pay a security where there is serious risk, based on past behaviour that they will not pay their PAYE or Class 1 NICs.