The director of a Welsh garage repair and MOT business has been disqualified from acting as a director for seven years, after an Insolvency Service investigation found he had traded to the detriment of creditors while insolvent, with some £90,000 owing for PAYE, National Insurance contributions and VAT
Russell Williams was found to have traded between 25 January 2013 and 14 August 2013 whilst Bets Centres Ltd, a garage repairer and MOT specialist, was insolvent, incurring further liabilities of £106,097, including £89,134 to HMRC.
Bets Centres Ltd was subject to a creditors’ voluntary liquidation on 14 August 2014 and had an estimated deficiency of £373,803.
The Insolvency Service said Williams also personally benefitted by causing £107,200 in transactions to the detriment of creditors from 25 January 2013 and June 2013.
Sue MacLeod, chief investigator of the Insolvency Service, said: ‘In investigating insolvent companies, the Insolvency Service always looks very closely at individuals who demonstrate a disregard for creditors and appropriate action is taken where wrongdoing is uncovered.’
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.
