Restaurant owner ban for £120K tax payment takeaway

A mother and son who ran a restaurant in Blackburn have been disqualified for seven and four years after they under-declared the company’s full cash takings to the tax authorities

Ching Yau Yu and Vincent Wai Kit Yu were directors of Kai Hing Ltd. The company was incorporated in January 2011 and traded as Yu and You Restaurant and Bar, a Chinese restaurant which featured in the TV programme, Ramsay’s Best Restaurant, in 2013.

However, Kai Hing Ltd entered into difficult trading conditions and Vincent and Ching Yu liquidated the company in January 2017, owing their creditors close to £385,000.

Independent insolvency practitioners were appointed to wind-up the business and reported to the Insolvency Service that the company had a substantial amount of tax discrepancies.

This triggered an investigation by the Insolvency Service, which discovered that Vincent and Ching caused the company to under-declare its full cash takings as soon as Kai Hing Lt started trading in September 2011.

Further enquiries found that Vincent and Ching Yu had already been warned that they had failed to declare more than £600,000 worth of additional sales between October 2011 and January 2016, which would have led to additional tax liabilities of just under £120,000.

Despite making no payments towards the balance of the increased liability, the business continued to trade until January 2017, while submitting quarterly returns and paying them in full.

Vincent Yu has been banned for seven years and his mother for four years. 

Rob Clarke, chief investigator for the Insolvency Service, said: ‘This was not a one-off incident where Vincent and Ching Yu failed to declare their full income as the misdemeanour sustained itself throughout the history of the company.

‘Directors are expected to carry out their full responsibilities regardless of their role, including paying the right amount of tax. The Yu’s bans should serve as a warning to others that we will investigate misconduct and pursue disqualification where serious breaches of this nature occur.’

Report by Pat Sweet

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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