Case details for Michael Chad-Smith

Name: Michael Chad-Smith

Name: CHADSMITH (UK) LIMITED

Date of Birth: 19 / 5 / 1966

Date Order Starts: 7 / 9 / 2021

Disqualification Length: 3 Years 0 Month(s)

CRO Number: 07417306

Last Known Address: Chitterman House, Polly Botts Lane, Ulverscroft, , MARKFIELD, LE67 9PT

Conduct: Michael Chad-Smith (“Mr Chad-Smith”) caused Chadsmith (UK) Limited (“CUKL”) to trade to the detriment of HM Revenue and Customs (“HMRC”) from 08 February 2017 (when the Value Added Tax (“VAT”) liabilities for the VAT period ended 12/16 fell overdue for payment) and from 02 January 2018, (when the Corporation Tax (“CT”) liabilities for the CT period ended 31 March 2017 fell overdue for payment) until CUKL ceased trading on or around 31 December 2018. VAT • CUKL failed to submit VAT returns to HMRC by their due dates for eight VAT periods ended: 12/16, 03/17, 06/17, 09/17, 12/17, 06/18, 09/18 and 12/18 and HMRC raised VAT assessment (£155,215) and surcharge assessments (£21,332) totalling £176,547 for these periods. No payments were made by CUKL against these; • CUKL made a payment of £8,000 to HMRC on 21 February 2017 and HMRC applied this to the VAT (£7,457) and surcharge assessment (£1,119) period ended 09/16 leaving £576 owing in respect of the surcharge assessment; • On or around 31 December 2018 CUKL ceased trading; • On 15 September 2019 HMRC presented a Winding Up Petition against CUKL; • On 02 October 2019 CUKL submitted VAT returns late to HMRC for eight VAT periods ended: 12/16, 03/17, 06/17, 09/17, 12/17, 06/18, 09/18 and 12/18 (cessation of trading) disclosing VAT liabilities totalling £35,723. HMRC applied surcharges totalling £4,567 to these periods these went unpaid at liquidation; • The oldest VAT liability at cessation of trade was the VAT liability for the VAT period ended 12/16 of £6,079 which fell overdue for payment to HMRC on 08 February 2017; • At liquidation CUKL’s VAT and surcharge liabilities to cessation of trading totalled £40,866 (includes £576 balance of the surcharge liability for 09/16 and excludes interest); CT • CUKL submitted CT returns to HMRC for the CT periods ended 31 March 2015 (£26,205) and 31 March 2016 (£23,861) disclosing CT liabilities totalling £50,066. Between 23 February 2017 and 15 November 2017 CUKL made payments totalling £26,774 to HMRC of which HMRC applied £13,995 to the CT period ended 31 March 2015 clearing the liabilities for this period and £12,729 to the CT period ended 31 March 2016 leaving £11,132 outstanding at cessation of trade; • CUKL failed to submit the CT return to HMRC for the CT period ended 31 March 2017 by its due date. On 13 November 2018 HMRC raised a Determination for £32,000 and applied a penalty of £6,600. No payments were made by CUKL to HMRC; • Information provided by CUKL’s accountants show for the CT period ended 31 March 2017 CT liabilities amounted to £20,534. This fell overdue for payment to HMRC on 02 January 2018 and remained unpaid at cessation of trade; • At liquidation CUKL’s CT liabilities to cessation of trading totalled £38,266 (includes penalty and excludes interest); Differential Treatment • At the date of liquidation, the total amount owed to creditors is £116,641 of which £96,641 (includes, winding up petition costs, interest and penalties) is owed to HMRC and £20,000 is owed to a connected party; • CUKL’s bank account statements show between 08 February 2017 to 29 May 2019 (last transaction on bank account) at least £217,381 (includes bank charges and interest) was paid to various parties including Mr Chad-Smith, or to his benefit. Whilst over the same period £8,000 was paid to HMRC in respect of its VAT liabilities and £26,774 in respect of its CT liabilities. 

This information is correct as at 18 / 8 / 2021



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