Payroll company director banned for VAT fraud

The director of a payroll services company based in Essex has been disqualified from acting as a company director for six years for failing to declare £6m of VAT payments that were due, following an investigation by the Insolvency Service (IS).

Jonathan Shawyer was the director of Sigma Payroll Services Ltd, which entered voluntary liquidation on 23 June 2010. The IS investigation found he had allowed the company to declare less VAT liability to HMRC than it owed.

The company had submitted tax returns for April 2009 - March 2010 declaring a total VAT liability of £497,341 which was then paid in full. However HMRC assessments, based on the company's bank activity, showed this was £5,920,648 less than expected.

Mark Bruce, an IS chief examiner, said: 'When companies submit incorrect tax returns on time and pay the amounts due immediately, it may take some considerable time for the tax authorities to discover what is really due. This was such a case where nearly £6m in tax was undeclared. Such behaviour introduces unfair competition in the market and robs hardworking taxpayers of resources needed to run public services.'

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...

View profile and articles

0
Be the first to vote

Rate this article

Related Articles
Subscribe