Ten-year ban for director’s £900k tax failures

Clive Urwin, the director of a company supplying call centre and printing services has been disqualified from for 10 years after an Insolvency Service investigation found he had failed to pay almost £900,000 owing to HMRC

Urwin was a director of Tyburn Realisations Ltd (Tyburn), which was formerly known as Tyburn Marketing Solutions Ltd and traded under the name of Parade Marketing Services.

Tyburn, which was based in Birmingham, went into administration in July 2014 owing £978,494 to creditors including £889,335 in respect of liabilities due to HMRC.

Between March 2011 and April 2013, Urwin caused Tyburn to attempt to evade its responsibilities to HMRC with regards to VAT and PAYE/ NIC. An investigation into Tyburn’s VAT affairs resulted in VAT liabilities totalling £222,086 and PAYE/NIC liabilities totalling £289,958.

The Insolvency Service’s investigation found that the third party agreements offered up by Urwin to HMRC failed to stand up to examination and that Tyburn’s own company records showed that Tyburn continued to directly employ its own staff.

Urwin also caused Tyburn to trade to the detriment of HMRC from August 2012, in respect of VAT, and from May 2013, in respect of PAYE/ NIC, until the date of administration resulting in further VAT liabilities totalling £174,305, and PAYE/NIC liabilities totalling £103,222.

Sue MacLeod, chief investigator of insolvent investigations Midlands & West 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.’

HMRC background note:

Most businesses pay their taxes, but when a business goes under, the public purse may be left with large irrecoverable tax debts. HMRC, like any other creditor, has a duty to work with insolvency practitioners to work out whether the directors acted correctly at all times.

From 6 April 2012, HMRC can require employers to pay a security where there is serious risk, based on past behaviour that they will not pay their PAYE or Class 1 NICs. 

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