Crime Solicitors

The director of a Glasgow-based company has been disqualified for seven years after failing to make payments to HM Revenue and Customs (HMRC) – and failing to keep records for a failed company, ESP Powdercoating Limited, of which he was a director.

ESP Powdercoating Limited was incorporated on 3 December 2004 with its registered office at 2 Fitzroy Place, Glasgow in Lanarkshire. The company traded from Unit 2A, 30 Stronend Street in Glasgow and Trevor Shieff was the only director at the time of liquidation.

On 13 February 2014, HM Revenue & Customs presented a petition to Glasgow Sheriff Court to wind up the company – a winding up order was granted on 20 March 2014.

Mr Shieff’s disqualification follows an investigation by the Insolvency Service –
a Disqualification Order was made against him on 20 January 2016, which means that from 10 February 2016, he cannot promote, manage, or be a director of a limited company for the duration of his ban.

The company began trading in 2009 as a powder coater of alloy wheels and other metal objects and was ordered into liquidation in March 2014 by Glasgow Sheriff Court, following the winding-up petition presented by HMRC.

The Insolvency Service investigation found that Mr Shieff caused ESP Powdercoating Limited to trade to the detriment of HMRC from at least 1 January 2012 – the company submitted six VAT returns, but did not file VAT returns for four quarters, for which HMRC raised assessments.

At liquidation, the company had incurred VAT liabilities totalling at least £30,881.79 – and owed £30,313.27 in relation to accrued PAYE/NIC, having made no payments after 5 July 2011.

However, after 31 December 2011, there are no recorded payments made by the company to HMRC, which was owed at least £61,195.06 at liquidation.

Mr Shieff also failed to ensure that the company maintained and/or preserved complete and full accounting records – and failed to deliver all existing records the period 1 January 2012 to the date of liquidation in 2014.

As a result, the Insolvency Service found it was not possible to verify the full and true nature of the company’s business and operations, or establish the date of cessation of trading activity, or establish the identity and value of the company’s assets.

In the absence of any VAT or PAYE records, it was also not possible to establish the full and true amount due to HMRC in relation to VAT and PAYE/NIC – or establish the identity of payees of, and reasons for, receipts into the company’s bank account totalling £60,568.77 during the period 31 December 2011 to 30 December 2013.

Investigators were also unable to establish the identity of recipients of and reasons for payments from the company’s bank account totalling at least £34,565.61 during the period 31 December 2011 to 30 December 2013.

At the date of liquidation, ESP had assets of £1,821 and liabilities of £79,037.

Chief Investigator at the Insolvency Service, Cheryl Lambert, said:

“Directors who do not comply with their obligations to HM Revenue and Customs – and do not maintain adequate records – can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.”

Duncan Lewis Business Crime Solicitors

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