Six year ban for ex-claims company boss
A BUSINESSMAN who ran a claims and compensation company in Manchester has been banned from holding a company directorship for six years after failing to pay tax.
An investigation by the Insolvency Service followed after the failure of 44-year-old Richard Render’s company, Total Care Consumer Solutions Ltd.
The probe revealed Mr Render had paid himself salary and bonuses, but not VAT or corporation tax. When Total Care Consumer Solutions entered Creditors Voluntary Liquidation in July 2012 it had assets of £5,476 and liabilities of £265,526.
The disqualification, means that Mr Render cannot control or manage a company without leave of the court until 7 December 2020.
He failed to pay VAT from May 1 2009 and PAYE/NIC from 19 April 2010. He also failed to file Corporation Tax returns for the period ending 6 July 2007 leaving at least £246,510 owed to HM Revenue and Customs (HMRC) when the company went into liquidation.
The Insolvency Service said Mr Render also paid himself £154,135 when he knew the company was insolvent. This included six payments made between 15 December 2011 and 30 March 2012 totalling £98,000, with one payment of £30,000 marked as a bonus.
The company accounts also show that he reduced his personal loan to the company from £30,515 on 31 July 2009 to £2,500 on 3 July 2012 instead of paying his creditors.
Robert Clarke, head of insolvent investigations North at the Insolvency Service, said: “Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes and must not benefit themselves at the expense of creditors.
“Neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services. The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position.”