Insolvency Service
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Claims consultant banned for compensating himself ahead of HMRC

Richard Render, a Manchester-based director of Total Care Consumer Solutions Ltd who traded as a claims and compensation consultant, was disqualified as a company director for 6 years from 8 December 2014 for failing to pay tax but paying himself instead.

The disqualification, which follows an investigation by the Insolvency Service, means that Mr Render cannot control or manage a company without leave of the court until 7 December 2020.

Mr Render failed to pay VAT from 1 May 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 on 3 July 2012.

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.

NOTES TO EDITORS

  1. The company entered Creditors Voluntary Liquidation on 03 July 2012 with assets of £5,476 and liabilities of £265,526. Mr Richard Mark Render (DOB: 02 April 1970) of Manchester was the registered director from 07 July 2006 until the date of the Liquidation.
  2. The disqualification order was granted at the County Court at Manchester on 17 November 2014.

  3. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorizes and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.

  4. Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (BIS). Further information about live company investigations can be found on our website at: https://www.gov.uk/complain-about-a-limited-company.

  5. The Insolvency Service also administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available from:https://www.gov.uk/government/organisations/insolvency-service.

  6. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: piu.north@insolvency.gsi.gov.uk.

  7. Media enquiries only should be directed to: Kathryn Montague, Media & Campaigns Manager on 0207 674 6910 or Ade Daramy, Media Manager on 0207 596 6187.

  8. You can now subscribe to get e-mail alerts from the Insolvency Service. To subscribe, go to our website: and you will see a button to “sign up for email alerts and newsletters”, or click on the following link:https://public.govdelivery.com/accounts/UKBIS/subscriber/new.

  9. The Insolvency Service is now on twitter, you can follow us at @insolvencygovuk.
     

Channel website: https://www.gov.uk/government/organisations/insolvency-service

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