Two accountants have been disqualified from acting as directors after failing to pay ?1.4m tax from their payroll*companies
Kenneth Macgregor Munn and Richard Jonathan Owen Rees have been disqualified from acting as a director for seven years and four years respectively, after failing to pay over ?1.4 million in taxes.
Munn and Rees were directors of Dormco SCP Ltd; S C Personnel Ltd; Cotsen Accountants Ltd; and Cathedral Road Management Ltd. All four companies traded in succession as payroll companies providing services to other companies also controlled by Munn and Rees, who are accountants. The companies went into liquidation in August 2013.
An investigation by the Insolvency Service found that Munn was responsible for Dormco SCP Ltd failing to file a Corporation Tax return resulting in the payment of an assessed amount of tax which was ?168,520 less than the amount which he knew was due, and that Rees was found to have allowed this to happen. Both directors also caused all four companies to fail to pay Pay-As-You-Earn (PAYE) and National Insurance Contributions (NICs) amounting to ?1,242,616 when due.
At the date of liquidation, the amount owed to HM Revenue and Customs (HMRC) amounted to ?1,450,995 including additional interest, tax and penalties.
The Secretary of State for Business Energy and Industrial Strategy accepted disqualification undertakings from both on 28 July 2017. The disqualifications commence on 19 July 2017.
Commenting on the disqualification, Sue MacLeod, Chief Investigator at the Insolvency Service, said:
These actions not only gave these companies and others controlled by the directors an unfair advantage over their competitors, but have also left the public purse seriously shortchanged.
If you run a business in a way that is unfairly detrimental to any of its creditors, including by failing to correctly pay tax, the Insolvency Service will seek to remove you from the business environment.