Case details for Craig Andrew HUGHES

Name: Craig Andrew HUGHES

Name: HL Tours Limited

Date of Birth: 17 / 7 / 1991

Date Order Starts: 18 / 4 / 2019

Disqualification Length: 9 Years 0 Month(s)

CRO Number: 08272907

Last Known Address: 41 Stapleford Road, , , , LUTON, LU2 8AY

Conduct: Craig Hughes (hereinafter referred to as “Mr Hughes” or “the director”) caused HL Tours Limited to conceal assets of HL Tours Limited (hereinafter referred to as “the company”) to the detriment of its creditors in that:

  • Assets of the company, those being 3 coaches, were professionally valued in July 2017 as worth at least £39,500.
  • The company entered into liquidation on 24 October 2017.
  • Shortly before liquidation, and on 25 August 2017 at the latest, Mr Hughes removed the 3 coaches without the permission of the liquidator and concealed them.
  • On 25 August 2017 Mr Hughes entered into an unauthorised “parking agreement” with the land owner where the coaches were being kept, the agreement being to pay £50 per coach per week.
  • Mr Hughes failed to co-operate with the liquidator in retrieving the coaches or revealing the location where they were kept, despite threats of legal action and solicitor’s letters before action.
  • When the coaches were traced by the liquidator’s agent it was found that the coaches had deteriorated in condition and value, and the terms of the parking arrangement were revealed. The landowner invoice state that the coaches had been parked on his land from 25 Aug 2017 – 18 Aug 2018.”
  • The coaches were recovered and sold by the liquidator for £19,500 which was a decrease of at least £20,000 to their original valuation. In addition fees of £9,180 (inclusive of VAT) had to be paid to the landowner to have the coaches released.
  • The concealment of the coaches by Mr Hughes was to the detriment of the creditor’s and caused a loss of at least £29,180 (inclusive of charges of £9,180). Mr Hughes failed to ensure that HL Tours Limited maintained or preserved adequate accounting records and/or in the alternative failed to deliver up adequate accounting records to the liquidator for the period 5 April 2016 to 24 October 2017 being the date of liquidation. As a result of this failure, it has not been possible to; Assets:
  • The last set of filed accounts is for the year ended 31 October 2015. These show tangible assets with a net book value of £233,882. This includes additions of £100,000 and disposals of £45,500, meaning net additions of £55,000 during that year.
  • The sworn Statement of Affairs of 24 October 2017 show fixed assets with a realisable value of £40,500. As no asset register or other source documents have been delivered up, the discrepancy of £193,382 between the assets in the last set of filed accounts and the Statement of Affairs is unexplained.
  • Determine that all of HL Tours Limited assets were disclosed in the Statement of Affairs and in particular, to determine what, if any, stock, plant and machinery and office equipment was owned by HL Tours Limited at the date of liquidation, and the full and true value of any items transferred or otherwise disposed prior to liquidation. Bank transactions
  • The liquidator has obtained bank statements for the company’s trading from 05 April 2016 to 06 November 2017. It has not been possible to ascertain who some of the beneficiaries were or whether all payments were made in respect of bona fide business expenses. These transactions including but are not limited to:
  • During the period 5 April 2016 to the date of liquidation, ie the period for which no books or records have been delivered up to the liquidator, the company made electronic bank transfers of £132,924.51 to bank accounts where the beneficiaries/account holders are not shown on the bank statements. Of this amount, £127,447.01 was transferred to Barclays bank account 20-53-33 0***5301, and the company received transfers of £41,975.05 from that account giving net transfers from the company to this account of £85,471.97. Barclays Bank has confirmed that this account is held in the name of the director.
  • During the period 5 April 2016 to the date of liquidation the bank statements show cash withdrawals of £23,989.28, the nature and purpose of which it has not been possible to ascertain without invoices or other source documents.
  • Deduce, in the absence of sales invoices or other source documents the reason for credits into the company’s bank account totalling £855,247.88 during the period 5 April 2016 to 24 October 2017 being the date of liquidation. Book debts
  • The director initially informed the liquidator that the company had book debts of £25,000. For purposes of the Statement of Affairs, this was written down by 50% to make provision for bad debt and the Statement of Affairs signed by the director on 24 October 2017 states the book debts to have a realisable value of £12,500.
  • The absence of the debtor ledger has hampered the collection of these book debts and no realisation has been achieved. This is to the detriment of creditors as approximately £12,500 of book debts has not been recovered. HMRC
  • Establish the correct VAT liability position at liquidation.
  • Establish, in the absence of any payroll information and/or sub-contractor details whether amounts were due to HMRC in respect of unpaid PAYE/NIC/CIS.
  • Determine the amount of remuneration received by Craig Hughes and if any taxes is owed by the company for that remuneration. General
  • Determine the cause of failure and the exact circumstances in which the estimated deficiency to creditors of £38,555 as per the sworn Statement of Affairs arose and whether this came about entirely as a result of genuine trading losses.
  • Verify the assets and liabilities position as per the sworn Statement of Affairs.
  • Ascertain the exact date when trading ceased and all transactions around that time are accounted for and asset dispositions verified. 

    This information is correct as at 28 / 3 / 2019

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