An Exeter-based accountant and his partner have been banned from acting as company directors and insolvency practitioners, after an investigation by The Insolvency Service exposed a catalogue of negligent accounting and grossly inaccurate VAT returns in their company records.
The couple, William Henry George White, (also known as Bill White) and Jayne Ann Thompson, also White’s business partner, have been disqualified from acting as company directors for eight years and six years respectively.
Acting on behalf of The Insolvency Service the Official Receiver found that Mr White and Mrs Thompson’s company, Rosswell Associates Limited, went into liquidation on 17 April 2008 with no assets, owing debts of £213,685.
Commenting on the case James Pales, Assistant Official Receiver for Exeter said that keeping proper company records and filing correct VAT returns is a basic business function that all company directors have responsibility for.
He said: “The fact that Mr White and Mrs Thompson have agreed to these disqualification undertakings should offer the public reassurance. The Insolvency Service has robust powers and we will not hesitate to use them to remove dishonest, reckless and irresponsible people from the business environment.”
Company Director Disqualification Undertakings were sought after the investigation was unable to confirm that the company directors of Rosswell had maintained proper accounting records – Mr White and Mrs Thompson failed to deliver them to Official Receiver.
The Insolvency Service also said that disqualification undertakings were taken as available records indicated that at least £24,430 is owed by the directors to Rosswell Associates Limited.
There is an additional amount due for un-invoiced work carried out for the benefit of Mrs Thompson, as well as an associated company, which could be as high as £165,104. The lack of records has apparently prevented further investigation into this matter.
The Official Receiver also found numerous discrepancies in Roswell’s accounting for VAT. Again the lack of records prevented further investigation into whether Rosswell claimed and received rebates from HMRC totalling £39,940 by filing inaccurate VAT returns.
Finally, the decision to ban the pair was made due to the difficulty distinguishing between the trading of Mr White, trading as an accountancy firm W White & Co, and the trading of Rosswell as available records showed that purchases of the accountancy firm were included in Roswell’s VAT returns.
Members of the public who think they know of a person who is acting in breach of a Director Disqualification Order or Undertaking can report them to The Insolvency Service Enforcement Hotline on 0845 601 3546.
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