The disqualification follows an investigation by The Insolvency Service.
Flack Building Contractors, which provided electrical contracting services to commercial clients and local housing associations, went into liquidation on 29 July 2011 owing £253,111 to creditors. Most of it – £222,500 – was owed to HM Revenue & Customs (HMRC) in unpaid taxes. HMRC’s records show that the company had unpaid taxes dating back to November 2009.
The Insolvency Service investigation showed that on 2 February 2011, Mr Flack sought advice from an Insolvency Practitioner (IP) regarding his company’s financial position. The IP established that the company was insolvent and advised Mr Flack on available options.
Mr Flack, aged 42, told the IP that he would cease to trade on or about 11 February 2011. In fact he did no such thing. The company continued to trade while making no attempt to repay the taxes owed and incurring further tax debt, which also went unpaid. Furthermore Mr Flack paid out £60,676 from the company to himself or for his personal benefit.
Insolvency Service chief examiner Mark Bruce said: “Directors who seek an unfair advantage over their competitors by not paying tax are damaging commercial confidence and harming the UK’s reputation as a place to do business. They should not expect to get away with it.
“Other directors tempted to follow this path should remember that if they run a business in a way that is detrimental to either its customers or its creditors they lose the protection afforded by limited liability. The Insolvency Service will investigate them and seek to remove them from the business environment.”
Got a story? Email news@theconstructionindex.co.uk
