The disqualifications follow investigations by the Insolvency Service into the companies, Centrix Commercials Ltd, Kirbrook Ltd, Simonscroft Ltd, Urban Vehicle Contracts Ltd and Vehicle Solutions Ltd, all of which failed to account to HMRC for VAT after selling on vehicles obtained from Europe to UK customers. The companies were all wound up by the court owing a total of £3,591,015 to creditors.

The investigation found that the directors set up the companies and bank accounts, although their role in the actual trading of the companies was limited to arranging bank account transactions and, in some cases, submitting VAT returns to HMRC, which significantly understated both sales and VAT owed.

The lack of proper accounting records meant that investigators were unable to establish, from the companies’ records, the reasons for cash withdrawals and other non-business related payments. Details of the vehicles purchased and sold could not be determined and there was no evidence that the companies had complied with import regulations.

Ken Beasley, of the Insolvency Service’s Public Interest Unit, said: ‘These disqualified directors allowed the companies to be involved in a scam to defraud the public purse and failed to maintain proper accounting records. Some of these individuals acted on the instructions of unscrupulous third parties, turning a blind eye to the activities of the companies and paying no attention to their responsibilities as company directors.’

Following the investigation, Jon Joseph Dann, Alan Birtles, Mark Price, Adam Doyle and James Ball, all from Liverpool, have been disqualified from acting as directors for between five to seven years having also failed to submit VAT returns on behalf of the companies. Both Ball and Doyle were also ordered to pay the costs of court proceedings leading to the disqualifications.