Case details for Wei AO

Name: Wei AO


Date of Birth: / /

Date Order Starts: 3 / 7 / 2019

Disqualification Length: 4 Years 0 Month(s)

CRO Number: 10166048

Last Known Address: 25 UPPER COURTYARD, , , , BELFAST, BT7 3LJ

Conduct: Wei Ao (Mr Ao) caused or allowed A Happy Chef Limited (AHCL) to register for VAT under the Flat Rate Scheme when he knew or ought to have known that AHCL was ineligible to do so given the likelihood that ACHL's future annual turnover would exceed the relevant threshold. Thereafter he failed to ensure that AHCL complied with its obligations to HM Revenue & Customs (HMRC) as regards VAT and PAYE/NIC and caused or allowed AHCL to trade to the detriment HMRC as a consequence of which HMRC are owed at least 150,579 and are the only known creditor of AHCL at liquidation. In particular:

  • On 01 June 2016 AHCL continued the takeaway business previously carried on by another VAT-registered company.
  • On the same date, AHCL registered for VAT under both the Flat Rate Scheme (FRS) (a scheme for small businesses with an annual taxable turnover of 150,000 or less) and the Annual Accounting Scheme (AAS).
  • AHCL's application for VAT registration (form VAT 1) estimated AHCL's annual turnover to be only 90,000 as a result of which HMRC required 3 quarterly payments on account under the AAS of only 2,250 each (total 6,750), all of which were paid by AHCL.
  • In fact, and as Mr Ao knew or ought to have known: o records for the takeaway business for the 5 month period prior to 01 June 2016 show turnover of at least 192,000; and o ACHL's actual turnover for the 8 month period from 01 June 2016 to 04 February 2017 was 412,352 and HMRC estimated AHCL's annual turnover for the first year of trading ending 31 May 2016 to be 604,451
  • AHCL failed to submit its annual VAT return under the AAS.
  • HMRC issued VAT Assessments for the 12 month period 01 June 2016 to 31 May 2017 totalling 93,613 and, after applying the payments on account (6,750), 86,863 remained unpaid at liquidation. HMRC issued an additional Assessment for 27,626 in respect of the final period 01 June 2017 to 31 July 2017 (the date AHCL de-registered for VAT) which also remained unpaid at liquidation.
  • AHCL was registered for PAYE/NIC with effect from 28 June 2016.
  • AHCL submitted returns which show the total amount due in respect of PAYE/NIC for months 3-12 of the tax year 2016/2017 and months 1-5 of 2017/2018 was 615.84 and 1,593.46 respectively, all of which was paid by ACHL.
  • In fact, PAYE/NIC was due in relation to additional wages in excess of 100,000 which had not been declared in the returns submitted by ACHL.
  • HMRC issued Regulation 80 Determinations in respect of additional PAYE/NIC totalling 36,142, all of which remained unpaid at liquidation.
  • At liquidation HMRC was the only known creditor of AHCL with a claim of 150,579 in relation to unpaid VAT and PAYE/NIC. 

    This information is correct as at 2 / 8 / 2019

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