Robert James Dacey, director of Cheshire-based Promoderne Limited, which designed and built production systems has been disqualified from acting as a director for four years, from March, for trading to the detriment of HM Revenue & Customs.
Commenting on the disqualification, Mark Bruce, a Chief Examiner at the Insolvency Service said:
Directors who fail to pay taxes, especially after taking money from customers, should not expect to get away with it as the money rightly belongs to the taxpayer.
"Other directors tempted to follow this path should get the message: if you run a business in a way that is detrimental to either customers or creditors, you can expect to lose the protection afforded by limited liability. The Insolvency Service will investigate and remove you from the business environment
The disqualification follows an investigation by the Insolvency Service. Mr Dacey, 49, of Appleton, Warrington has given an undertaking to the Secretary of State for Business, Innovation & Skills that he will not act as a director of a limited company from 7 March 2014 to 2018.
Promoderne Limited entered voluntary liquidation on 2 March 2012.
The Insolvency Service investigation found that the company had traded to the detriment of HMRC in that:
From 1 March 2009 and 2 March 2012, arrears of Corporation Tax increased from 36.57 to 152,306.30. During the same period company income totalled at least 756,789.38 and company expenditure totalled 821,289.03 of which only 2,500 was for Corporation Tax.
From 26 May 2010 to 2 March 2012, the date of the liquidation, arrears of VAT increased from 27,033.65 to 27,368.65. Since 26 May 2010 to the time it went into liquidation, the company filed only one return; for the quarter ending May 2010, for 22.31 and as such HMRC have raised assessments for the quarters ending August 2010 to February 2012. Insolvency Service analysis demonstrates that the company under-declared the May 2010 quarter by at least 2,164.23, and as such HMRC under-assessed the quarters following by at least 25,038.87, meaning the company VAT liability is at least 54,571.75. During the same period, company income totalled 171,230.32 and expenditure totalled 156,052.96 of which 22.31 was for VAT.
On 6 April 2010, the company fell into arrears of PAYE and NIC. On that date, payments of 15,314.76 fell due. From that date until 2 March 2012, the date of liquidation, company income totalled 181,583.61 and expenditure totalled 165,199.35 of which nothing was paid for PAYE/NIC.