Paul Morris, the director of Leeds-based cleaning company Morris Morris (UK) Ltd (MMUK) has been disqualified as a director for six years for paying himself instead of the taxman.
Mr Morris disqualification, which starts on 26 December 2013, follows an investigation by the Insolvency Service. MMUK entered creditors voluntary liquidation on 1 November 2011, with a deficiency of 159,317.
Mr Morris, who lives in Aberford near Leeds, gave an undertaking to the Secretary of State for Business, Innovation and Skills not to act as a director until 2019. In the undertaking, he did not dispute that between 20 April 2010 and 11 October 2011, he caused MMUK to pay him 93,622 through his directors loan account.
The investigation showed:
Mr Morriss directors loan account was already overdrawn by 60,107 prior to these transactions and by the date of liquidation this had grown to 153,729.
During the period that Mr Morris paid himself, the company was in tax arrears. At liquidation, MMUK owed HM Revenue and Customs 78,108 and 63,321in VAT and PAYE/NIC respectively.
Commenting on Mr Morriss disqualification, Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said:
This disqualification shows that the Insolvency Service will vigorously pursue directors who seek to benefit from money which should have been used to pay tax. Removing him from the marketplace should serve as a warning to all who indulge in such practices.