The director of a Nottingham-based electrical installation company has been banned for 5 years after a VAT bill of over £100,000 went unpaid.
Stuart Palethorpe was the sole director of On Form Electrical Ltd, which traded from early 2015 until November 2018.
HMRC filed for liquidation of the business in 2018 due to unpaid VAT arrears and the official receiver was appointed liquidator.
The subsequent investigation by the Insolvency Service revealed that in the past three years of trading, Palethorpe had failed to ensure that its business had paid VAT returns.
At the time of liquidation in December 2018, On Form owed the Treasury £102,417 in unpaid VAT.
However, because Palethorpe did not keep adequate accounting records, it is possible that the company owed an even higher amount. The lack of documentation also prevented the Official Receiver from determining whether money disbursed from company bank accounts was used for legitimate business expenses.
As a result, the High Court gave Stuart Palethorpe a 5-year disqualification order, effective November 30, 2021.
The disqualification order prevents Palethorpe from engaging directly or indirectly in the promotion, formation or management of a business without court permission.
Dave Elliot, the Insolvency Service’s chief investigator, said: ‘Directors need to make sure their businesses pay the correct taxes, but investigations have proven that Mr Palethorpe failed to do so while he was in charge. the company.
“The electrician’s ban should serve as a warning to administrators that if you fail to fulfill your obligations and seek to gain an unfair advantage over your competitors, by not accounting and paying your tax correctly, you could lose limited liability protection.