An Insolvency Service case highlights the importance of following the insolvency advice Manchester’s troubled business directors receive – and the potential costs of failing to do so.
In the case, a Manchester-based man failed to pay VAT from May 2009 and PAYE from April 2010; he also failed to file Corporation Tax returns, and when his claims and compensation consultancy entered into company liquidation, it left behind an HMRC bill of almost £250,000.
Despite this, he continued to pay himself throughout the period from December 2011 to March 2012, including reducing his own personal loan to the company, and paying himself funds earmarked as a bonus.
He has now been disqualified from acting as a company director for six years, and cannot manage or control a company until December 7th 2020.
Robert Clarke, head of insolvent investigations for the north at the Insolvency Service, said: “Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes, and must not benefit themselves at the expense of creditors.
“Neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services.”
The case highlights why it is so important to closely follow the insolvency advice Manchester practitioners provide, to ensure creditors are treated fairly and avoid enforcement action later on.