Directors of management accounting business disqualified

TWO directors of a company that provided management accounting services to schools have been disqualified for neglecting the company’s tax affairs.

Barry McColgan and Elena McColgan, who both acted as directors of Financial Management For Schools Limited (Financial), have been disqualified for eight years and three years six months respectively, for failing to ensure the company registered with HMRC for VAT and PAYE/NIC as required despite charging VAT.

They also caused the company to trade to the detriment of HMRC from 1 July 2005 until November 2014 in respect of VAT and from 22 May 2009 at the latest to November 2014 in respect of PAYE/NIC, the Insolvency Service said.

At the date of company’s iquidation HMRC were owed an estimated £134,438 in respect of VAT and £35,369 in respect of PAYE/NIC.

The disqualifications, from 18 July 2016, prevent Mr and Mrs McColgan from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.

Commenting on the disqualification, Robert Clarke, head of company investigations at The Insolvency Service, said: “Company directors have a duty to ensure businesses meet their legal obligations, including registering for and paying taxes. Deliberate neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services.”

Related reading