Date of Birth: 13 / 1 / 1969

Date Order Starts: 6 / 2 / 2019

Disqualification Length: 6 Years  Month(s)

CRO Number: 07018427


Conduct: Michael Edward Eames (Mr Eames) caused A1 Recovery and Garage Services Limited (A1) to trade to the detriment of HM Revenue and Customs (HMRC) in respect of Value Added Tax (VAT) from at least 07 December 2014 and in respect of Pay As You Earn (PAYE) and National Insurance Contributions (NIC) from at least 19 December 2014 until the date of administration on 05 January 2016 resulting in, according to A1s accounting records, VAT liabilities at administration totalling 81,444 and PAYE/NIC liabilities of 81,666 making a total of 163,110. In that: VAT

  • VAT liabilities of 81,444 were incurred and accrued for the periods 10/14 to cessation, including default surcharges. During this period no payments were made to HMRC in respect of VAT. PAYE/NIC
  • A1 commenced trading in July 2014 and no payments were made in respect of its PAYE/NIC liabilities until 19 January 2015 of 2,000, at which point its total accrued liabilities were 29,738 (after the payment).
  • Whilst A1 made payments of 800 per week between 28 January 2015 and 01 July 2015, pursuant to a Time to Pay Agreement with HMRC, A1 did not meet its current liabilities as they fell due. On 01 July 2015 A1s liabilities in respect of PAYE/NIC were 42,252.
  • HMRC had written to A1 on 02 March 2015 stating that the Time to Pay Agreement had been cancelled.
  • A1 made its next payment in respect of PAYE/NIC on 09 October 2015 of 1,250, and made further payments in this amount on 16, 23 and 30 October 2015, being A1s last payment in respect of its PAYE/NIC liabilities. These payments totalling 5,000 were less than A1s liability for October 2015 (5,474).
  • HMRC issued a winding up petition on 10 November 2015.
  • A1s accounting records show that the total PAYE/NIC liabilities at the date of administration were 81,666. Other creditors
  • At the date of administration, according to its accounting records and/or claims received, A1 was indebted to HMRC in the sum of 163,110; to trade and expense creditors in the sum of 9,145; to him in the sum of 35,786 and a connected company in the sum of 20,000.
  • Between 28 February 2015 and the date of administration the amounts due to HMRC increased by 98,886 to 163,110, whilst the amounts due to trade creditors decreased by 15,750 to 9,165. Mr Eames caused A1 to transfer 29,663 to two connected companies after 23 December 2015, being the date that A1 had ceased to trade, which was to the connected companies benefit and to the detriment of A1s creditors, in particular HMRC at a time when he knew or ought to have known that A1 was insolvent, in particular: Prior to 23 December 2015
  • HMRC had issued a winding up petition on 10 November 2015 in respect of debts totalling 106,608, which was to be heard on 11 January 2016.
  • He had signed A1s accounts for the year ended 31 August 2015 on 19 November 2015 which showed a total net deficiency of 53,323. After 23 December 2015
  • Of total payments of 44,993 made from A1s bank account after the cessation of trade 29,663 were paid to the connected companies, with 15,330 being paid to other parties
  • Whilst one of the connected companies, which received 27,465, lodged a claim in the administration for 20,000, A1s accounting records indicate that at administration it was indebted to A1 in the sum of 22,013. 

    This information is correct as at 10 / 4 / 2019

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