James Henderson has been disqualified from acting as a director for 9 years for acting as a company director of Henderson Paving Limited (Henderson Paving) while he was bankrupt and failing to make payments related to that company to HM Revenue and Customs.
His wife, Katrina Henderson, has also been disqualified for three-and-a-half years for failing to make sure payments to HMRC were made, again, relating to the same company. The disqualifications follow an investigation by the Insolvency Service.
The company began trading in October 2011 providing paving services to commercial and private clients. On 23 December 2013 a winding up order was made against the company on a petition presented by HMRC.
The Insolvency service investigation found that Mr Hendersons estate was sequestrated on 5 October 2011 under the provisions of the Bankruptcy (Scotland) Act 1985 on a bankruptcy petition presented by HMRC
An undischarged bankrupt is prohibited from being a director of a company, or in any way whether directly or indirectly to be concerned or take part in the promotion, formation or management of a company, without leave of the court.
The investigation also found that:
while he was bankrupt and before he was discharged from his sequestration on 8 September 2012, Mr Henderson acted as director of Henderson Paving without leave of the Court to do so
Mr and Mrs Henderson failed to ensure that the Company complied with its statutory obligations to make payments to HMRC in respect of pay as you earn tax (PAYE) and national insurance contributions (NIC) and caused the Company to trade to the detriment of HMRC
payments totalling 3,000 were made by the Company between 24 July 2012 and 21 August 2012 .No further payments were made to HMRC in respect of PAYE/NIC throughout the remainder of trade
during the period 20 December 2011 to 23 December 2013, the Company received payments into its bank account totalling 101,409.57 and made payments from its bank account totalling 104,592.79. Of this sum, only 3,000 was paid to HMRC in relation to PAYE/NIC. 5,944.71 was for the benefit of Mrs Henderson
as a result, on the cessation of trade, HMRC was owed at least 46,151 out of total liabilities of 47,606
At the date of Liquidation, Henderson Paving Limited had no assets and liabilities of 47,606.
Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:
Directors who do not take the bankruptcy regime seriously and who do not comply with their obligations to HM Revenue and Customs can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
Mr Henderson disregarded his ban and both Mr and Mrs Henderson failed to ensure that the company complied with its statutory obligations. As a result HM Revenue and Customs are owed a substantial amount of money.
Taking action against Mr and Mrs Henderson is a warning to directors to take their duties seriously.