DM boss banned for 10 years for £900,000 tax debt

The boss of a West Midlands call centre and fulfilment house has been disqualified from acting as a company director for 10 years after he failed to pay nearly £900,000 in VAT and staff tax contributions.
Clive Urwin of Denton, Northamptonshire, has left a trail of dissolved and liquidated direct marketing businesses over the past two decades, and has already been hauled up by HMRC over previous non-payment of tax.
He has now been forced to sign an undertaking, which began 19 December 2016, that also bans him from managing, or in any way controlling, a limited company until 2026.
Urwin was a director of Tyburn Realisations, which was formerly known as Tyburn Marketing Solutions and traded under the name of Parade Marketing Services.
The firm went into administration on 18 July 2014, owing £978,494 to creditors including £889,335 in respect of liabilities due to HMRC.
An investigation by The Insolvency Service found that 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.
Third party agreements offered up by Urwin to HMRC failed to stand up to examination and that Tyburn’s own records showed that the company continued to directly employ its own staff.
Urwin also caused Tyburn to trade to the detriment of HMRC from 07 August 2012, in respect of VAT, and from 22 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. Neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services.”
In 2012, Unwin was forced to pay almost £60,000 to HMRC after failing to pay a cash security to allow trading to continue after he had folded his previous business, Parade Marketing Ltd at the same Birmingham premises, which went into liquidation owing VAT of £124,000 in 2010.
However, he ignored the notice and continued operating, doing about £642,000 of work and resulting in £93,000 of VAT being owed to HMRC.
At the time, Unwin admitted 10 offences in court – with a further 371 to be taken into account – of supplying goods and services without giving a security when required between September 2009 and April 2010.

TOPICS:HMRC The Insolvency Service VAT