Case details for Raymond St John MURPHY

Name: Raymond St John MURPHY

Name: St John Law Limited

Date of Birth: 5 / 7 / 1946

Date Order Starts: 19 / 4 / 2019

Disqualification Length: 8 Years 0 Month(s)

CRO Number: 07835324

Last Known Address: 1 Cedarland Terrace, 21a Copse Hill, , , LONDON, SW20 0NB

Conduct: 1. Raymond St John Murphy (“Mr Murphy”) caused St John Law Limited (“St John”) to fail to comply with obligations to file and pay taxes as and when due, to the detriment of HM Revenue & Customs (“HMRC”), over the trading period May 2012 to 9 October 2014, in that:

  • St John commenced trading in May 2012 and ceased at the date of Administration on 9 October 2014. Pay As You Earn (“PAYE”), National Insurance Contributions (“NIC”), Corporation Tax (“CT”) and Schedule D
  • Schedule D Stamp Duty of £14,049 was due and payable on 9 December 2012 but remained outstanding at Administration.
  • PAYE and NIC of £193,278.86 due for the year 2012/2013 should have been paid in full by 19 April 2013, £152,434.80 remaining outstanding at the date of Administration.
  • PAYE and NIC totalling £107,504.67 was due and payable monthly under Real Time Information (“RTI”) reporting for the year 2013/2014, £98,159.41 of which remained outstanding at the date of Administration.
  • PAYE and NIC totalling £98,180.45 was due and payable monthly under RTI for the year 2014/2015, £96,180.45 of which remained outstanding at the date of Administration, an employment credit of £2,000 having been given.
  • CT of £15,228 for the period ended 3 November 2012 was due for payment by 4 August 2013 and £1,308 for payment by 1 September 2013, none of which had been paid.
  • With the result that at the date of Administration, HMRC were owed a total of £386,074.14 in respect of PAYE, NIC, CT and Schedule D Stamp Duty, including interest and penalties. Value Added Tax (“VAT”)
  • VAT returns and any payment due thereon were due in respect of the period ended July 2012 by 7 September 2012 and in respect of every quarter thereafter. However, the quarter ended July 2012, on which £36,420.36 was due and the quarter ended October 2012, on which £18,318.74 was due, were not filed until 3 May 2013. The quarter ended January 2013 on which £11,875.94 was due and quarter ended April 2013 on which £17,135.11 was due, were not filed until 23 July 2013. No further returns were filed prior to Administration.
  • No payments were made in respect of VAT throughout.
  • With the result that at the date of Administration, a total of £196,255.97 was due to HMRC in respect of VAT. Comparative treatment
  • St John’s Financial Statements show a turnover of £649,752 in the period to 30 November 2012 and £1,292,535 for the year ended 30 November 2013. St John’s bank statements show income of £1,176,796.96 in the period 1 December 2013 to Administration.
  • Only £50,189.32 had been paid to HMRC over the entire trading period, none of which had been in respect of VAT.
  • Over the same period, Mr Murphy had received repayments totalling £241,003 against his director’s loan and St John had made payments totalling £75,818 to a person who was not a director, shareholder, employee or creditor of St John .
  • With the result that at the date of Administration, £582,330 was owed to HMRC. Other creditors were owed £404,341, £94,466 of which was to the Redundancy Payment Service, funded by HMRC. 2. Between 27 June 2014 and 09 October 2014 Mr Murphy caused St John to make payments to himself of £24,400 and to make further payments in excess of those agreed by virtue of the schedule to the Validation Order dated 29 August 2014 totalling £200,852.20 at a time when he knew that the company was insolvent and were therefore to the detriment of creditors. In that:
  • On 27 June 2014, HMRC filed a Winding-Up Petition in the High Court against St John.
  • Between 04 July 2014 and 18 August 2014 Mr Murphy caused St John to make payments to himself totalling £24,400.
  • On 29 August 2014 St John made an Application to the High Court for a Validation Order pursuant to Section 127 of the Insolvency Act 1986 “for an Order that payments made out of and into the Law Firm’s bank account in the ordinary course of business from the date of presentation of the Petition until the date of judgement on the Petition or further Order in the meantime shall not be void by virtue of the provisions of section 127 of the Insolvency Act 1986.”
  • On the same date the High Court granted the Order, that payments in the Schedule attached to the Order and totalling £129,616 (additional professional fees of £15,000 were later allowed) shall not be void by virtue of the provisions of Section 127 of the Insolvency Act 1986. This Schedule specifically excluded Mr Murphy from the Staff Salaries total and did not include any specific payments to him.
  • Over the period 27 June 2014 to the date of Administration on 9 October 2014, payments totalling £370,481 were made out of St John’s bank account. These included the payments totalling £24,400 to Mr Murphy. 

    This information is correct as at 9 / 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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