Claims consultant banned for compensating himself ahead of HMRC

A CLAIMS consultant has been disqualified as a company director for six years for failing to pay tax but paying himself instead.

The disqualification, which follows an investigation by the Insolvency Service, means that Richard Render, a Manchester-based director of Total Care Consumer Solutions, cannot control or manage a company without leave of the court until 7 December 2020.

Render failed to pay VAT from 1 May 2009 and PAYE/NIC from 19 April 2010 and 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 when the company went into liquidation on 3 July 2012, the Insolvency Service said.

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.”

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