Case details for Darren HARRISON-LITTLE


Name: Contech UK Concrete Services Limited

Date of Birth: 7 / 12 / 1968

Date Order Starts: 15 / 10 / 2021

Disqualification Length: 7 Years 0 Month(s)

CRO Number: 08596871

Last Known Address: Endymion Cottage,, Barmby Moor,, , , York,, YO42 4HS

Conduct: Darren Harrison-Little also known as Darren Harrison (“Mr Harrison-Little”) failed to ensure that Contech UK Concrete Services Limited (“Contech”) complied with its statutory obligation to make returns and payments to HM Revenue & Customs (“HMRC”) from October 2014 in respect of Value Added Tax (“VAT”) and April 2014 in respect of Pay as you earn tax (“PAYE”) /National Insurance Contributions (“NIC”) /Construction Industry Scheme tax (“CIS”), and as a result Contech traded to the detriment of HMRC, in that:- • Contech was incorporated in July 2013, ceased trading in May 2018 and was placed into Liquidation on 09 May 2018 • HMRC have submitted a proof of debt in the Liquidation for £1,439,933 comprising VAT £1,223,892, PAYE/NIC/CIS £161,317, CIS Penalties of £25,735, Interest £1,494, Corporation Tax £25,694 and Corporation tax penalties £1,800. VAT • Contech applied to be registered for VAT on 24 July 2013 and was supposed to submit monthly VAT returns. • Although sometimes late, returns were submitted by Contech for the months 10/13 to 01/17. In the absence of returns, HMRC raised assessments for the months 02/17 to Liquidation. • Contech had several VAT reclaims totalling £25,454 which were all offset against VAT and surcharges owing. In addition, payments of £78,737 were made between 12 December 2016 and 01 December 2017. • On 12 June 2017, HMRC levied VAT inaccuracy penalties totalling £13,259 for the months 04/14, 09/14, 11/14, 12/14, 03/15, 05/15, 06/15, 08/15, 09/15, 10/15, 12/15 and 01/16. • At Liquidation, the months 10/13 to 07/14 were paid in full, with the exception of the civil penalty of £385 for 04/14. Arrears began to accrue from 09/14 onwards (08/14 was a VAT reclaim) with £10,746.57 outstanding for this month. Thereafter, only two further months were paid in full with the cumulative amount owing for VAT increasing every month except 01/15 and 02/15. • In total, HMRC are owed £1,223,892 at Liquidation in respect of VAT. PAYE/NIC/CIS • Contech incurred PAYE, NIC and CIS liabilities totalling £244,931 between incorporation and Liquidation comprising 2013/2014 £29,334, 2014/2015 £69,069, 2015/2016 £25,679, 2016/2017 £30,448, 2017/2018 £85,620 and 2018/2019 £4,780. • For the tax years 2015/2016 to Liquidation, the company has failed to submit the required CIS returns and as such HMRC have assessed the CIS owing as £6 for each year apart from 2018/2019 where only £1 has been assessed. These sums are included in the figures above. • Due to the non-submission of CIS returns and in addition to the sums above, HMRC have raised Regulation 13 determinations for CIS of £24,679, CIS penalties of £25,735, a taking control fee of £75 and interest of £2,099. • Reducing the HMRC liability each tax year, the company benefitted from Employer’s Allowance of £2,000 in the years 2014/2015 and 2015/2016 and £3,000 in 2016/2017 and 2017/2018. • As the company operated as a CIS sub-contractor, CIS tax was deducted at source from payments received from contractors and offset against the PAYE, NIC and CIS owing to HMRC as EPS Credits. The sums offset were 2013/2014 £2,547, 2014/2015 £19,687, 2015/2016 £26,130 and 2016/2017 £28,877. • During 2013/2014 the company made only one payment towards PAYE, NIC and CIS of £3,387 on 04 December 2014. • No further payments were made until 18 August 2015 to 09 November 2015 when the company made four payments of £5,000 under a time to pay agreement with HMRC. The total payments made were insufficient to pay the amount owing for 2013/2014 which should have been paid in full by 22 April 2014. • No further payments were made with the only reduction in the liability coming from CIS deducted at source and employers allowance as detailed above. • HMRC have claimed £188,547 in the Liquidation for PAYE, NIC, CIS, penalties and interest. The Insolvency Services calculations using information provided by HMRC show that £186,890 is owed and we cannot account for how HMRC have calculated for the differing figure. Comparative treatment • At 31 July 2016 Contech owed £294,236 to HMRC compared to £205,091 to other creditors. Over the period 09 May 2016 to liquidation, Contech’s bank statements show total sales of at least £4,041,737. In the same period Contech paid £78,737 to HMRC. • Between 09 May 2016, Mr Harrison-Little received the net sum of £215,614and his co-director received the net sum of £226,593. • At liquidation, Contech owed £1,439,933 to HMRC compared to £284,711 to other creditors, which included £91,881 to connected parties. On 2nd August 2017 and 7th December 2017 Darren Harrison-Little also known as Darren Harrison (“Mr Harrison-Little) breached his fiduciary duties as a director of Contech UK Concrete Services Limited (“Contech”) and caused or allowed, assets with a total value of £75,600 inc VAT to be transferred to himself and his co-director, for no consideration, and at a time he knew or ought to have known that Contech was insolvent. The transfers were to the detriment of the company’s creditors in that:- • Contech had failed to submit VAT returns as required for the periods 12/13 to 10/16. The company accountants brought the returns up to date between 22 August 2016 and 28 December 2016. Only one payment had been made in respect of VAT during this period for £8,737.43 on 12 December 2016. The amount due for VAT as at 01 January 2017 was £480,041; • Contech was also in arrears with payments for PAYE/NIC and CIS with £70,290 owing as at 22 April 2017 • In addition to the above sum, on 10 October 2016, HMRC had levied Reg 13 determinations of £24,679 against Contech for non-submission of CIS returns. • Between March 2017 and June 2017, Contech made payments of £50,000 to HMRC for VAT; One further payment of £20,000 was made on 05 December 2017. No payments were made in respect of PAYE and NIC; • On 12 June 2017, HMRC levied penalties totalling £13,259 against the company for inaccurate VAT returns. • The company attempted to make payments of £35,000 on 10 August 2017 and £50,000 on 24 November 2017, however these payments were not honoured by the bank; • On 02 August 2017, assets with a value of £15,600 inc VAT comprising all of Contech’s office contents and computer systems were transferred to Mr Harrison-Little. An invoice and schedule were drawn up, but no consideration was paid for the transfer; • On 07 December 2017, assets with a value of £60,000inc VAT comprising all of Contech’s machinery and workshop equipment not on finance were transferred to a co-director. An invoice and schedule were drawn up, but no consideration was paid for the transfer; • On 09 May 2018, Contech was placed into Creditors’ Voluntary Liquidation; • At the date of Liquidation on 09 May 2018 HMRC were owed £1,439,933 and trade and expense creditors were owed £192,830. 

This information is correct as at 27 / 9 / 2021

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