A director of an Italian restaurant has been banned for six years after failing to accurately record the businesses turnover in VAT returns, resulting in owing HMRC £41,000
HMRC discovered that Mohammad Iqbal Qayumkhan, 43, failed to record the turnover of Eyetech Solution Ltd. Correctly on VAT returns for the period 05/13.
Due to this HMRC made further assessments of VAT for the periods that he was director, 08/11 to 11/13 inclusive, finding that he owed HMRC £41,812 in losses and additional penalties of £36,587.
Sue McCleod, chief investigator at the Insolvency Service, said: ‘The Insolvency Service will investigate and disqualify directors who seek to undermine the tax system by attempting to avoid their statutory obligations to HMRC and remove the protection of limited liability.’
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.
