David Stephenson, 44, director of Tech Direct (Scotland) Ltd, a company specialising in the storage, delivery and installation of computer components and peripherals, was disqualified for eight years from 4 April 2014 for failing to keep adequate records, pay tax and rates debts or register for VAT.
Following an investigation by the Insolvency Service, Mr Stephenson gave an undertaking to the Secretary of State for Business, Innovation and Skills not to act as a director, manage, or in any way control a company until 3 April 2022.
The investigation found that due to the failure to maintain or preserve adequate accounting records, it has not been possible to verify the total income or expenditure of the company and in particular account for 114,000 paid from the company bank account to other accounts operated by the director.
Robert Clarke, Head of Insolvent Investigations North, at the Insolvency Service, said:
Directors have a duty to make sure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency. Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.
Furthermore, in the interests of an even playing field for all, directors must adhere to their statutory duties to register for, and pay, tax liabilities. Companies that fail to do so obtain an unfair competitive advantage and upon failure their directors will find themselves investigated by the Insolvency Service and facing a lengthy ban.
The investigation also found that rather than register the company for VAT when it commenced trading in April 2009, Mr Stephenson continued using a former companys VAT number and charged VAT to customers. In spite of these charges, he failed to submit either returns or payments due to HM Revenue & Customs.
Mr Stephenson also failed to make payments to HMRC for PAYE and NIC or to pay non domestic rates to the companys local authority; with the result the company owed more than 110,000.