A director of a construction company based in the West Midlands has been disqualified from being a company director for a period of 7 years from 11 June 2018.
Why did this happen?
The director, Martin Baker, admitted that he failed to ensure the company declared its true VAT liabilities on returns submitted to the HMRC. In addition, Baker also admitted that the company had a second bank account which was not disclosed to HMRC.
The value of the under-declared VAT was at least £205,262 and as a consequence penalties of £90,146 were raised. The company was liquidated in January 2017 owing £469,673 to creditors, including at least £344,221 for VAT.
What are the implications of a disqualification?
The effect of such an order is that the disqualified director cannot:
- act as a director of a company;
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership; and
- be a receiver of a company’s property.
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The director of a construction company based in Cradley Heath has been disqualified for seven years after he failed to declare all the company’s sales income.