COMPLETE SCAFFOLDING SOLUTIONS LTD

David James VERTH

July 1968

Disqualified from being a director because of their conduct for the period of

6 Years 0 Month(s)

Disqualification starts from

3 February 2020

Improper conduct which resulted in their disqualification

Between 01 December 2015 to liquidation on 18 April 2018, David James Verth (“Mr Verth”) failed to ensure Complete Scaffolding Solutions Limited (“Complete Scaffolding”) maintained and/or preserved adequate accounting records, or in the alternative failed to deliver up such records to the liquidator. . As a consequence it has not been possible to account for the following:
The position regarding the company’s income:
Company bank statements for the period 01 December 2015 to 18 April 2018 reveal income in the sum of £384,460. In the absence of company accounting records it is not possible to determine if this represents the total income received during the period.
The position regarding the company’s expenditure:
Company bank statements for the period 01 December 2015 to 18 April 2018 reveal expenditure in the sum of £394,291 which includes £66,590 in cash withdrawals. In the absence of company accounting records it is not possible to determine the purpose of these cash withdrawals and whether they were for the benefit of the company.
The position in relation to company assets:
Company accounts for the period ended 30 November 2015 disclose assets totalling £41,685 which includes debtors totalling £32,112. In the absence of company accounting records it is not possible to determine if this amount is included within the company receipts and were collected for the benefit of the company.
The inability to verify/substantiate the level of remuneration paid to the director and the amounts owed to, or owed by, the director in respect of any director’s loan account.
The correct position in relation to Value Added Tax (“VAT”) due to HM Revenue and Customs (“HMRC”) Trading to the Detriment of HMRC Mr Verth failed to ensure that Complete Scaffolding complied with its statutory obligations to submit payments to HMRC and caused Complete Scaffolding to trade to the detriment of HMRC from 22 May 2016 in respect of Pay AS You Earn (“PAYE”) and National Insurance Contributions and from 07 April 2017 in respect of VAT until 18 April 2018 when the company entered into liquidation. Over this period payments to other creditors were maintained resulting in HMRC being the sole creditor at liquidation. PAYE/NIC 2016/17
The company submitted monthly PAYE and NIC returns for the period ended 05 May 2016, due on the 22 May 2016, to 05 April 2017 disclosing a liability of £23,369.65 against which a payment of £166.74 was allocated and £3,000 was credited for employer’s allowance leaving £20,202.91 outstanding at liquidation. 2017/18
The company submitted monthly PAYE and NIC returns for the period ended 05 May 2017, due on the 22 May 2017 and 05 November 2017, due on the 22 November 2017 disclosing a liability of £11,375.15 against which no payments were made and employer’s allowance of £3,000.00 was credited leaving £8,375.15 outstanding at liquidation. VAT
The company failed to submit VAT returns for the period ended 28 February 2017, due on the 07 March 2017 to 28 February 2018, due on the 07 March 2018, resulting in HMRC raising assessments, surcharges and a civil penalty in the sum of £27,765.50 against which no payments were made leaving the full amount outstanding at liquidation. Comparative Treatment
Accounts for the period ending 30 November 2015 reveal trade creditors (£15,343), Taxes £29,458 and director’s loan £14,936. At liquidation the only claim submitted is for HMRC totalling £62,464.75. A review of bank statements from 22 May 2016 to liquidation on 18 April 2018 disclose expenditure totalling £323,605 of which £65,640 relates to cash transactions (ATM), £116,202 to individuals (wages), £708 in bank charges, £27,210 paid to the director and £84,719 in trade and expense. During this period £20,284 was paid to HMRC.