The director of a joinery company has been banned for ten years after an Insolvency Service investigation discovered he was continuing to act as a director while disqualified, and owed HMRC some £500,000
The investigation found Michael Ashton had been the director of MA Partitioning, Ceilings & Joinery Ltd, based in Stoke, in breach of a previous five year disqualification undertaking that had been due to expire on 6 October 2018.
The company, which traded as a joinery installation, provider of shop fitting services and interior fittings installation, went into Creditors’ Voluntary Liquidation in May 2015.
MA Partitioning failed to submit statutory returns to HMRC and traded to its detriment. The Insolvency Service said HMRC was owed £516,057 at liquidation made up of missing VAT, PAYE and CIS payments, or in the alternative that Ashton had failed to ensure that the company deregistered for VAT, PAYE and CIS.
MA Partitioning’s bank account statements showed that between 8 March 2012 (when the full amount of the VAT liabilities for the first VAT period ended 01/12 fell overdue for payment) to the date of liquidation, £3.33m was expended from the bank accounts.
Of this amount £22,160 paid to HMRC in respect of its VAT liabilities and nothing was paid to HMRC in respect of its CIS tax/PAYE/NIC liabilities. However, over the same period £12,800 was paid to Ashton or to his benefit and £3,294,588 was paid to various others.
Previously, in 2013 as a director of CNT Ancillaries Ltd, Ashton had failed to ensure the company maintained adequate accounting records and failed to ensure the company complied with its statutory obligations to HMRC, causing that company to trade to their detriment. This misconduct had resulted in the earlier director disqualification undertaking.
Aldona O’ Hara, investigation leader, insolvent investigations Midlands & West at the Insolvency Service, said: ‘This result should make it very clear to disqualified directors who ignore their disqualification undertakings and continue to act as directors that they will be vigorously pursued by the Insolvency Service.
‘The length of the undertaking in this case sends a clear message to the business community that such actions will not be tolerated.’
