IT director banned for eight years over £190k tax liability

The director of an IT consultancy who failed to pay £190,000 of VAT and corporation tax payments due over a three-year period has been disqualified for eight years following an Insolvency Service investigation

Anthony Hodges was the sole director of Hodges & Coley Ltd (H&C), based in Basingstoke. The Insolvency Service’s investigation found he failed to ensure the company paid its tax liabilities from January 2011 until January 2014, when it went into liquidation.

At this point HMRC was owed 191,136. Over the three year period, Hodges paid £3,100 to HMRC and at least £423,024 to himself and his family, including £41,471 which was paid at a time when H&C was insolvent and Hodges had informed his accountant of his intention to liquidate the company.

Robert Clarke, head of insolvent investigations 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.’

HMRC background note:

Most businesses pay their taxes, but when a business goes under, the public purse may be left with large irrecoverable tax debts. HMRC, like any other creditor, has a duty to work with insolvency practitioners to work out whether the directors acted correctly at all times.

From 6 April 2012, HMRC can require employers to pay a security where there is serious risk, based on past behaviour that they will not pay their PAYE or Class 1 NICs. 

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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