Taxi firm director struck off for eight years

The owner of a Liverpool taxi firm has been disqualified from acting as a director of a limited company for eight years for failing to pay tax or keep proper accounting records following an investigation by the Insolvency Service.

Lee Battle was the sole director of Yorkspeed Ltd trading as City Kabs from May 2006. The company operated as a taxi firm in the Croxeth area of Liverpool and went into creditors' voluntary liquidation in April 2011 with assets of £20,079 and liabilities of £340,468.

The Insolvency Service said a lot of the company's transactions were cash based, as is usual in cab companies, but the accounting records delivered up to the liquidator were insufficient to explain more than £700,000 cash withdrawals, over £40,000 of bank transfers and more than £13,500 of cheques, between August 2009 and March 2011.

Battle also failed to explain why the company made lump sum payments of over £40,000 each to both himself and a family member. In addition, the company had a debt of £226,705 to HMRC in respect of VAT and PAYE/NIC in the last two years of trading.

Robert Clarke, Insolvency Service head of insolvent investigations north, said: 'The substantial period of this disqualification reflects the fact that when a company fails to keep adequate financial records it is simply not possible to determine whether there has been other, more serious, impropriety in relation to the management of its affairs.'

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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