Building company director banned for 7 years for VAT under-declaration

THE director of a building firm in West Wales has been disqualified from acting as a director for under-declaring sales on VAT returns.

Judie Thomas, 55, a company director from Carmarthen, has given a disqualification undertaking for seven years.

The disqualification is 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 became due to HMRC who are owed £95,322.

Thomas 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.  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.

In January 2014, HMRC undertook investigations into the company’s VAT returns and determined that sales figures had been under-declared in at least 6 VAT periods from December 2011 to December 2013. The HMRC investigation also determined that Ms Thomas failed to ensure that all VAT returns were submitted on time with the earliest unpaid return being for the period 09/09.

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.

Stephen Baxter, the Official Receiver who oversaw the investigations, 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 market place.”