The Insolvency Service has taken action against a father and son, after they allowed a company to trade while insolvent.
Robert Newmark, 63, and Brett Newmark, 34, were directors of Rosslyn Hill Limited – trading name Beach Blanket Babylon – which operated restaurants and bars that traded out of premises in Ledbury Road in west London and Bethnal Green Road in east London.
Although Companies House records showed that Robert Newmark had officially resigned from being a company director on 7 February 2013, he continued to act in the capacity of a director of Rosslyn Hill Limited.
Companies House records further revealed that Robert Newmark was subject to a four-year disqualification from 21 April 2015 and was not allowed to hold the position of director.
Robert and Brett Newmark were disqualified from acting as a company director for five years and three-and-half years, respectively, for causing and allowing a company to trade while insolvent, at the risk of the HMRC and to the father’s benefit.
Robert Newmark had advised HMRC in November 2013 that Rosslyn Hill Limited did not have the funds to pay its outstanding tax liabilities.
However, the company continued to trade – and at liquidation in June 2014, the company’s deficit was £1,186, 532, of which HMRC was owed £1,021,477 in relation to arrears of VAT, PAYE and National Insurance contributions.
The outstanding taxes dated back to November 2013 and continued to increase until liquidation.
The company records show that, from November 2013 onwards, Robert Newmark received payments of at least £267,463.
Commenting on the disqualification, Lawrence Zussman – a Deputy Head of Investigations with the Insolvency Service – said:
“These disqualifications send a clear message to other company directors – even if you are not a registered director but act in that capacity, continue to trade when you are aware that your company is insolvent, or if you treat creditors such as HMRC differently to others, then the Insolvency Service will investigate and you run the risk of being removed from the business environment.”
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