Case details for Christopher Lee

Name: Christopher Lee

Name: Security Maintenance Solutions Limited

Date of Birth: 5 / 5 / 1972

Date Order Starts: 10 / 4 / 2019

Disqualification Length: 7 Years 63 Month(s)

CRO Number: INV5080501

Last Known Address: 82 Stonyhill Avenue, , , , Blackpool, FY4 1PP

Conduct: Christopher Lee (“Mr Lee”) has failed to maintain and/or preserve adequate accounting records for Security Maintenance Solutions (“SMS”) for the period 01 March 2013 to the date of liquidation on 07 October 2016 and additionally, following liquidation has failed to deliver up such records as were maintained when required to do so. As a consequence it has not been possible to:- - Determine why the goodwill and intellectual property of SMS were transferred to a former director for no consideration prior to Liquidation, what value they had and whether this was in the best interests of SMS and its creditors.# - Determine why Mr Lee received 75 payments from the bank account totalling £90,577 annotated with his name and/or repay or owe in the period 25 September 2014 to Liquidation and whether these payments were in the best interests of SMS and its creditors. - Determine why Mr Lee appeared to receive further unexplained payments totalling £80,878 and made payments in totalling £37,537 in the period 22 October 2014 to 14 September 2016 and whether these were in the best interests of SMS and its creditors. - Determine why cash totalling £10,505 was withdrawn from cash machines and what this money was used for. - Determine the reasons behind net payments totalling £3,815 to an online retailer and whether they were in the best interests of SMS and its creditors. - Determine the true extent of trade creditors and debtors and therefore accurately evaluate SMS’ final position at Liquidation. - Determine the true extent of sales and verify that purchases were made in the best interests of SMS and its creditors. -Determine the causes of failure. Mr Lee caused SMS to trade to the detriment of Her Majesty’s Revenue & Customs (“HMRC”) by failing to make payments in full in respect of Pay As You Earn (“PAYE”) and National Insurance Contributions (“NIC”) from 19 May 2012 to 07 October 2016 and Value Added Tax (“VAT”) from 07 June 2014 to 07 October 2016 whilst paying SMS’s other creditors. SMS’ PAYE/NIC and VAT liability to HMRC totalled £108,799 with PAYE/NIC totalling £48,680 at Liquidation and VAT totalling £60,119 while trade creditors were owed £17,262. In addition SMS failed to comply with its statutory obligations to make VAT returns as and when due from 07 June 2014 onwards. In particular: PAYE/NIC - SMS made ten payments totalling £16,540 against the 2011/12 PAYE/NIC liability of £21,317 leaving a liability of £4,771 for the year. - SMS made two payments totalling £800 for the 2012/13 tax year against a liability of £16,113 and no payments were made for the tax years 2013/14, 2014/15 or 2015/16. -SMS made a PAYE/NIC payment of £920 on 28 September 2016 against the 2016/17 tax year, this was the last payment made by SMS. This was the first PAYE/NIC payment since 18 February 2013 when a payment of £500 was made. VAT - The last VAT return SMS filed was on 23 May 2014 for the quarter ended 30 April 2014 which showed a liability for the period of £4,074. - SMS made a payment of £1,750 on 31 March 2016 which cleared the liability (including surcharges) for the quarter ended 31 January 2014 with the remaining £729 being set off against the quarter ended 30 April 2014. This was the last payment made by SMS towards VAT. - SMS filed no further VAT returns with HMRC raising assessments and surcharges totalling £56,164 for the quarters ending 31 July 2014 to 31 October 2016 inclusive. -SMS made no payments against these assessments. Trade -SMS did not file accounts after the abbreviated accounts for year ending 28 February 2013. At Liquidation trade creditors were owed £17,262 whilst information provided to The Insolvency Service by HMRC shows the PAYE/NIC and VAT liability to be £108,799. -In the period 22 September 2014 to 07 October 2016 available bank statements show payments out of SMS’ bank account totalled £547,707 of which HMRC’s records show £9,270 was paid towards SMS liabilities compared to £11,917 to the trade creditors outstanding at liquidation. 

This information is correct as at 20 / 3 / 2019

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