Case details for MARK STOKES


Name: Red Plane Limited

Date of Birth: 12 / 3 / 1979

Date Order Starts: 22 / 4 / 2022

Disqualification Length: 6 Years 0 Month(s)

CRO Number: 06955095

Last Known Address: 12, Crosfield Road, , , Sumerseat, BL9 5NX

Conduct: Mr Mark Andrew Stokes ("Mr Stokes") failed to ensure that Red Plane Ltd ("Red Plane") complied with its statutory duties to file returns and make payments to HM Revenue and Customs ("HMRC") when due and caused Red Plane to trade to the detriment of HMRC from at least 22 September 2018 in respect of PAYE/NIC, VAT and Corporation Tax (CT) until liquidation on 5 December 2019. Further, from July 2019 onwards Mr Stokes instructed Red Plane’s accountant to make changes to the way drawings were allocated that were to his personal benefit and to the detriment of HMRC. In that: PAYE/NIC HMRC's final claim confirms that Red Plane's PAYE/NIC accrued from tax year 2017/18 onwards. RTI information provided by HMRC records credits in the sum of £13,424.84 and liabilities in the sum of £90,981.49 were allocated to Red Plane's PAYE/NIC account from tax year 2017/18 onwards. . Where credits of £13,424.84 are applied to the earliest PAYE/NIC liabilities which accrued from Month 1 of tax year 2017/18, they are sufficient to clear Red Plane's PAYE/NIC liabilities in full up to and including Month 4 of tax year 2018/19 (ended 05 August 2018). PAYE/NIC due in respect of Month 5 of tax year 2018/19 (month ended 05 September 2018) was not cleared in full and was due for payment in full by 22 September 2018. On liquidation, PAYE/NIC liabilities totalling £77,184.50 remained outstanding and overdue on liquidation covering periods Month 5 tax year 2018/19 to Month 8 of tax year 2019/20. The final payment was made towards Red Plane's PAYE/NIC liabilities on 11 July 2018. VAT Red Plane filed VAT returns in respect of periods 10/18 to 10/19 recording VAT due in respect of these periods in the sum of £42,327.57. Surcharges in the total sum of £4,931 were raised in respect of periods 10/18, 01/19 and 04/19. Payments totaling £15,160.92 were made between 21 December 2018 and 24 July 2019. When these payments are allocated to the earliest outstanding VAT liabilities they are sufficient to discharge the VAT and surcharge in respect of period 10/18 in full. As at the date of liquidation, VAT liabilities relating to periods 01/19 (due for payment in full by 7 March 2019) to 07/19 remained outstanding and overdue in the total sum of £32,097.57. Corporation Tax A Corporation Tax return was submitted for the accounting period ended 31 July 2018 recording a total Corporation Tax liability due to HMRC in the sum of £26,630. Corporation Tax due in respect of period ended 31 July 2018 was due for payment in full by 1 May 2019. However, no payment was made by Red Plane towards its outstanding Corporation Tax liabilities due for this period. As a consequence, a total Corporation Tax liability in the sum of £26,630 remained overdue and outstanding as at liquidation. Comparative treatment HMRC is the majority creditor in the liquidation by a significant margin having claimed the total sum of £147,539.91. From 22 September 2018 to liquidation on 5 December 2019, Red Plane's current account received credits totalling £349,577.69 and expended £359,269.06 of which payments totalling £109,126.56 were paid to Mr Stokes, £5,894.72 paid to Mrs Stokes and payments totalling £38,142.03 made to HMRC. Reallocation of drawings In July 2019, Mr Stokes instructed Red Plane's new accountants to process his earnings through payroll including funds previously extracted during months 1 – 4 of tax year 2019/20 which had been originally categorised as dividends. Mr Stokes' decision to instruct the new accountant to reallocate drawings as salary from dividends generated a significant PAYE/NIC liability in the sum of £59,570.44 which incurred in respect of month 7 of Tax Year 2019/2020 (due for payment by 22 November 2019) and increased Red Plane's outstanding PAYE/NIC liabilities claimed by HMRC on liquidation on 5 December 2019 to £77,184.50 The consequence of Mr Stokes' decision to account for all of his withdrawals from Red Plane as salary, and therefore via payroll, at a time when he had already become aware of the difficulties Red Plane faced in continuing to trade was to Mr Stokes’ personal benefit and to the detriment of HMRC as it created a significant increase in the amount Red Plane owed to HMRC which remained outstanding on liquidation. 

This information is correct as at 1 / 4 / 2022

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