Peter Addinall, a director of A.E.C. (Lincoln) Ltd, an electrical installation company, went into liquidation in June 2013 owing a total of 186,218 to creditors, has been disqualified from acting as a director for 6 years for failing to make sure the companys tax affairs were in order.
Peter Addinall, 61, of Lincoln, was the director of the company from August 2000 to liquidation and his disqualification follows an investigation by the Insolvency Service.
The investigation found that on 31 January 2013, HMRC gave the company notice that immediate security of 105,532 was required failing which it would have to cease charging VAT. Security was not given and the investigation revealed that between 21 April and 19 June 2013, the company issued 9 invoices which displayed no VAT number but on which 10,025 VAT had been charged, none of which was paid to HMRC.
Also, between 1 April 2009 and 31 March 2013 which covered 16 VAT quarters, A.E.C. (Lincoln) Ltd failed to submit VAT returns for 5 quarters, 10 returns were late and only one was sent in on time.
VAT arrears at the date of liquidation were 116,299 and tax arrears covering the 2009/2010 to 2013/2014 tax years were 62,760, making HMRC the major creditor, being owed 179,059 out of 186,218.
Commenting on Mr Addinalls disqualification Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:
Our investigation revealed Mr Addinall failed in his responsibilities as a director to deal with the companys tax affairs. These abuses of the tax regime which impact on HMRC, other traders and customers alike, will not be tolerated.