Restaurant director banned for three and a half years for failing to pay VAT

23 November 2017 by
Restaurant director banned for three and a half years for failing to pay VAT

The director of British restaurant Jacko's Bar and Diner in Nairn has been disqualified for three and a half years for failing to pay VAT and Machine Games Duty.

Darren Withers' ban begins on 29 November 2017, after an Insolvency Service investigation found Jacko's Bar and Diner was trading without paying HM Revenue & Customs (HMRC) for RTI PAYE from 22 May 2013, VAT from 16 January 2015 and Machine Games Duty from 31 May 2013.

On 27 June 2014 Jackos Bar and Diner entered into a "time to pay" arrangement with HMRC to allow unpaid VAT liabilities to be paid at a rate of £300 per week. On 19 November 2014 it was renegotiated to weekly payments of £500 with the obligation to remit future payments.

However, Withers failed to comply and as a result a liability of £34,640 remained outstanding at liquidation.

Between 31 May 2013 and 28 February 2016 Withers failed to ensure Jackos Bar and Diner paid the sum of £1,839 to HMRC for Machine Game Duty, which remained outstanding at liquidation.

The business entered liquidation on 4 November 2016 owing creditors £70,760. At the time of liquidation £11,266 remained outstanding for HMRC.

When it ceased trading in May 2016, Jackos Bar and Diner owed £1,483 to creditors and £47,745 to HMRC.

Robert Clarke, head of company investigation at the Insolvency Service said: "Directors have a firm duty to ensure they deal properly with tax matters and pay what is due. Taxation revenue provides for the benefit of all and cannot simply be ignored .Mr Withers has paid the price for failing to do that, as he cannot now carry on in business for the duration of his disqualification other than at his own risk."

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