Case details for SALLYANN REED

Name: SALLYANN REED

Name: M5 AUDIO & EVENTS LIMITD

Date of Birth: 10 / 5 / 1970

Date Order Starts: 8 / 5 / 2019

Disqualification Length: 4 Years 0 Month(s)

CRO Number: 07532559

Last Known Address: 9, SOUTH ROAD, , , TAUNTON, TA1 3DT

Conduct: Between 6 July 2015 and 16 February 2018 Sallyann Reed (Mrs Reed) abrogated her responsibilities as a director by allowing a person who was subject to a disqualification order to act as a director and in the management of M5 Audio & Events Limited (“M5 Audio”) without leave of the Court whilst subject to a disqualification undertaking. She failed to ensure that M5 Audio complied with its statutory obligations to submit all returns and make all payments and caused or allowed M5 Audio to trade to the detriment of HM Revenue & Customs (“HMRC”) from 1 January 2016 at the latest to 16 February 2018. In that: CORPORATION TAX

  • Corporation Tax amounting to £49,310 for the year ending 31 December 2014 should have been paid in full by 1 October 2015 and remained outstanding at liquidation.
  • Corporation Tax amounting to £18,000 for the year ending 31 December 2015 should have been paid in full by 1 October 2016 and remained outstanding at liquidation.
  • No return was submitted for the year ending 31 December 2016, which was due 1 October 2017
  • At liquidation the amount owed to HMRC for Corporation Tax totalled £87,172 and included tax of £67,310 and penalties of £14,862 for 2014 to 2016. VAT
  • M5 Audio had been registered for VAT from 2011.
  • Between 7 February 2016 and 7 February 2018, a period during which she was the appointed director, M5 Audio incurred VAT of £168,649 on returns and assessments for quarters 12/15 to 12/17 and made no payments in respect of those accruing liabilities.
  • In the same period M5 Audio made payments totalling £8,884 in respect of previous quarters.
  • A balance of £11,618 remains outstanding for quarter 12/15, which should have been paid in full by 7 February 2016
  • At liquidation the amount owed to HMRC for VAT totalled £216,401 and included tax of £168,649 and surcharges of £23,722 for the quarters 12/15 to 12/17, together with £12,618 still outstanding for quarters prior to 12/15 and a balance of £11,412 incurred after 7 February 2018. PAYE/NIC
  • The returns for the year ending 5 April 2017 (“2016/17”) show that PAYE/NIC/SLD due for payment in the year totalled £25,013. Against this liability an employment allowance of £3,000 was applied and payments of £12,621 were made leaving a balance of £9,392. If all payments are allocated to the earliest liabilities for 2016/17, £95 remains outstanding for October 2016, due for payment by 22 November 2016.
  • The returns for the year ending 5 April 2018 (“2017/18”) show that PAYE/NIC/SLD due for payment in the year totalled £14,047. Against this liability an employment allowance of £3,000 was applied and payments of £2,271 were made leaving a balance of £8,776. If all payments are allocated to the earliest liabilities for 2017/18, £181 remains outstanding for July 2017, due for payment by 22 August 2017
  • The last payment made in respect of PAYE/NIC was £1,396 on 9 July 2017
  • At liquidation the amount owed to HMRC in respect of PAYE/NIC/SLD totalled £19,673 and included Tax of £15,216 and interest of £334 for periods from April 2014 to December 2017, which fell due during the period Mrs Reed was the appointed director, together with £4,113 incurred after she resigned. Comparative treatment
  • In comparison, bank statements for M5 Audio’s current accounts show that between 1 December 2016 and 16 February 2018, the company made payments totalling £1,139,912 of which at least £105,025 was paid directly to she and her co-director. During the same period HMRC received £13,845.
  • Between the accounts for the year ending 31 December 2015 and the date of liquidation, the amount owed to trade creditors fell from £163,759 to £129,569, the amount owed to the bank fell from £34,575 to £8,835, the amount due for finance fell from £266,868 to £0 and the amount owed to HMRC rose from £112,679 to £322,676. 

    This information is correct as at 18 / 4 / 2019



    If you believe this page contains any errors, please email civil.proceedings.team@insolvency.gov.uk with details of the error that you have found.

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