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Claims consultant banned for compensating himself ahead of HMRC

By CreditMan Monday, November 24, 2014

Richard Render, a Manchester-based director of Total Care Consumer Solutions Ltd who traded as a claims and compensation consultant, was disqualified as a company director for 6 years from 8 December 2014 for failing to pay tax but paying himself instead.

Richard Render, a Manchester-based director of Total Care Consumer Solutions Ltd who traded as a claims and compensation consultant, was disqualified as a company director for 6 years from 8 December 2014 for failing to pay tax but paying himself instead.

The disqualification, which follows an investigation by the Insolvency Service, means that Mr Render cannot control or manage a company without leave of the court until 7 December 2020.

Mr Render failed to pay VAT from 1 May 2009 and PAYE/NIC from 19 April 2010. He also failed to file Corporation Tax returns for the period ending 6 July 2007 leaving at least £246,510 owed to HM Revenue and Customs (HMRC) when the company went into liquidation on 3 July 2012.

Mr Render also paid himself £154,135 when he knew the company was insolvent. This included six payments made between 15 December 2011 and 30 March 2012 totalling £98,000, with one payment of £30,000 marked as a bonus.

The company accounts also show that he reduced his personal loan to the company from £30,515 on 31 July 2009 to £2,500 on 3 July 2012 instead of paying his creditors.

Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said:

"Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes and must not benefit themselves at the expense of creditors. Neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services.

The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position."