Taxman issues warning after jeweller banned
Taxman issues warning after jeweller banned from running business
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Company directors have been warned to keep detailed financial records after Gary Wright director of a watch and jewellery wholesaler AS Diamonds in Stevenage was banned from acting as a director for six years for failing to explain away irregular payments.
Wright treated HMRC 'detrimentally', according to the Insolvency Service, by charging VAT on almost £500,000 worth of sales invoices but not filing any VAT returns or paying any VAT to HMRC.
Although Wright did submit accounting records, they were considered 'inadequate' by the Insolvency Service who claimed they were unable to verify the purpose of payments made to himself in excess of £160,000, cash withdrawals of £40,000 and supplier invoices worth £33,000.
Over a period of just 11 days in December 2014, almost £50,000 was transferred directly to Wright's personal bank account. As a result HMRC issued assessments totalling £123,922.
David Brooks, a chief investigator with the Insolvency Service, said:
"The period of this disqualification contained within the undertaking signed by Gary Wright sends a clear message to other company directors.
‘Company directors have a statutory duty under the Companies Act to keep adequate company records which should amongst other things satisfactorily explain payments."
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