Legal News

The director of a building company has been disqualified for seven years for VAT under-declaration.

Judie Thomas, 55 – a company director from Carmarthen in southwest Wales – was the sole director of a west Wales building company trading as A&J Thomas Holdings Ltd, which went into liquidation on 20 April 2015.

Ms Thomas has given an undertaking to the Secretary of State for Business, Energy and Industrial Strategy, which prevents her from being directly or indirectly involved in the promotion, formation or management of a company for seven years from 26 September 2016.

She was disqualified as a result of investigations undertaken by The Insolvency Service, which demonstrated that Thomas had caused or allowed A&J Thomas Holdings Ltd to under-declare sales on VAT returns.

As a result of the under-declarations, a debt of £95,322 became due to HMRC, which remains outstanding.

In January 2014, HMRC undertook investigations into the company’s VAT returns and determined that sales figures had been under-declared in at least six VAT periods from December 2011 to December 2013.

The HMRC investigation also determined that Thomas failed to ensure that all VAT returns were submitted on time, with the earliest unpaid return being for the period September 2009.

VAT liabilities have also been incurred for the periods 12/11, 9/12 – 12/13 and 6/14 – 6/15. The missing periods are due to these returns resulting in a VAT refund being due to A&J.

The company went into liquidation on 20 April 2015 owing £129,322 to creditors, of which £95,322 was the sum due to HMRC for under-declared sales on VAT returns and assorted miscellaneous sums due for Corporation Tax, PAYE and interest and penalties.

Of A&J’s liabilities at liquidation, a trade creditor is also owed £1,023 and a contractor is owed £32,977.

The Official Receiver who oversaw the investigations, Stephen Baxter, said:

“This disqualification demonstrates that directors who fail in their obligations and cause creditors to lose money can expect to be investigated by the Insolvency Service – and enforcement action taken to remove them from the marketplace.”

Duncan Lewis Business Crime Solicitors

Duncan Lewis business crime solicitors can advise at any stage of a charge or investigation into business crimes, including charges relating to, bribery, misrepresentation, fraud, false accounting, embezzlement, breaches of disqualification, tax and VAT evasion, cyber crime and white collar crime.

Duncan Lewis can also liaise with investigating authorities such as Trading Standards, Insolvency Service, HMRC, SFO, FCA, and City of London Police- as well as advising on Confiscation Orders under the Proceeds of Crime Act (POCA).

For expert legal advice on economic crime, call Duncan Lewis business crime solicitors on 0333 772 0409.