Electrical boss banned for £222k tax dodge

The director of an Essex building firm has been disqualified for four years for failing to pay taxes following an investigation by the Insolvency Service (IS).

Brett Flack was the boss of electrical contracting company, Flack Building Contractors, which provided electrical contracting services to commercial clients and local housing associations. The firm went into liquidation on 29 July 2011 owing £253,111 to creditors, of which the bulk (£222,500) was owed to HMRC in unpaid taxes. HMRC's records show that the company had unpaid taxes dating back to November 2009.

The IS found that earlier in 2011 Flack had sought advice from an Insolvency Practitioner (IP) regarding his company's financial position being informed that the company was insolvent and then advised on his options.

Although Flack told the IP that he would cease to trade on or about 11 February 2011, the IS investigation established that the company continued to trade while making no attempt to repay the taxes owed and incurring further tax debt, which also went unpaid. In addition, Flack paid himself £60,676 from the company for his personal benefit.

Mark Bruce, an IS chief examiner said: 'Other directors tempted to follow this path should remember that if they run a business in a way that is detrimental to either its customers or its creditors they lose the protection afforded by limited liability. The Insolvency Service will investigate them and seek to remove them from the business environment.'

Flack is disqualified from acting as the director of a limited company until May 2017.

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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