Director bans for online trading company bosses

THREE former bosses of a Liverpool online trading company which failed owing creditors more than £300,000 have been disqualified from acting as directors for filing incorrect VAT returns.

Brett Jones (54), Andrew O’Dwyer (38) and Loretta Jones (49), all from Liverpool, were the directors of BLA. Trading Ltd, which sold small electrical goods on Ebay. The business was founded in 2008 and was was placed into creditors voluntary liquidation in January 2011 wityh debts of  £311,767.

After an investigation by the Public Interest Unit (North), part of the Insolvency Service, the trio agreed to be disqualified for a total of more than 20 years.

Mr Jones is banned for nine years, Mr O’Dwyer for eight years and Mrs Jones for 42 months.

In giving their undertakings, the directors did not dispute that they
caused BLA Trading Ltd to submit incorrect VAT returns to HMRC.

The investigation found that BLA submitted incorrect VAT returns to HMRC for the VAT periods ending December 2008 to June 30 2010.

The investigation also found that the company failed in its statutory obligation to submit a VAT return for the VAT period July 1 2010 to September 30 2010 when VAT was owing.

The VAT returns for the VAT periods ending December 2008 to June 30 2010 declared VAT due on sales of £3,140 whereas the correct figure that BLA ought to have accounted to HMRC was £303,591.

Commenting on the disqualification, official receiver Ken Beasley said:
“Mr Jones and Mr O’Dwyer caused significant loss to HMRC by failing to ensure that BLA Trading dealt with its VAT affairs properly. In doing so their conduct fell below that which is expected of directors of a limited company.

“EBay traders are subject to the same VAT regime as those who do not trade on the internet, and those that do not handle their VAT affairs correctly may become subject to an HMRC investigation.”