PracticeAccounting FirmsTwo firms shut down by Insolvency Service

Two firms shut down by Insolvency Service

Sunday Solutions and Bradbury & Co were forced into liquidation following an Insolvency Service investigation into its umbrella tax scheme

TWO ACCOUNTANCY firms have been ordered into liquidation by a High Court following an Insolvency Service investigation.

Sunday Solutions and Bradbury & Co were shutdown on the grounds of public interest following investigations into their umbrella tax schemes.

The firms offered limited liability partnership (LLP) to clients with a particular focus on IT consultants. Under a partnership, the firm retains tax liabilities throughout the year which are released when tax payments are due.

An estimated £80m was handled by the firms on behalf of its 1,500 clients. However, the Insolvency Service concluded no funds were released to meet tax liabilities.

The companies did not admit the allegations made by the Insolvency Service and did not oppose the winding up.

Ms Registrar Barber said it was “expedient” in the public interest that the companies are wound up.

Other findings uncovered by the Insolvency Service include more than 100 bank accounts opened for partnerships, but there were no correspondeing registration of a LLPs at Companies House. The directors of the two firms also failed to “fully sco-operate” with the investigation.

Chris Mayhew, investigations supervisor Insolvency Service, said: “Anyone considering using an umbrella tax scheme needs to be confident that they are using a reputable company. The action taken in this matter sends a clear message: if you run a company that adopts unscrupulous business practices, we will investigate and where necessary take action to close them down”.

Sunday Solutions was registered to an address in Clifton, Bristol, while Bradbury & Co worked from Folkestone in Kent.

 

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