Underpaid tax has been cited as the most common reason for the
disqualification of company directors, according to research by City law firm
Other factors include the failure to keep correct accounting records, theft
and fraud, and continuing to trade while the company is insolvent.
The research also revealed a 31% jump in company director disqualification
proceedings launched over the past year.
Disqualification proceedings were launched against the directors of 1079
companies in 2008/09, up from 820 in 2007/08.
The firm said that directors are most often pursued for underpaying tax to
HMRC, with the directors of 403 companies – or 37% of all cases launched in
Edward Starling of Wedlake Bell said the figures show that despite HMRC
advocating greater leniency towards businesses facing cash flow problems, the
Insolvency Service is becoming more aggressive.
‘Many directors will choose to pay suppliers first as they consider this more
important for the immediate survival of their business. However, they must not
forget that failing to pay HMRC while continuing trading could eventually land
them into trouble personally,’ he said.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.