DCP CONTRACTS LTD

Brian William NEAL

January 1956

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

6 Years 0 Month(s)

Disqualification starts from

3 November 2021

Improper conduct which resulted in their disqualification

1,) Brian William Neal (‘Mr Neal’) caused DCP Contracts Ltd (‘DCP’) to submit inaccurate VAT returns to HM Revenue & Customs (‘HMRC’) which did not declare the full amount of VAT due. As a consequence HMRC raised an officer’s assessment for VAT of £160,211 for the quarters ending 01/2017 to 07/2019, plus penalties of £85,911. HMRC has submitted a total claim of £401,171 in the liquidation. In that: • HMRC determined that CIS receipts disclosed by DCP exceeded VAT outputs declared and commenced an enquiry; • At a visit on 05 July 2018 only purchase records were made available and although additional records were requested these were not provided in full; • HMRC then requested and reviewed bank statements, and as a result determined that VAT had not been fully declared, even allowing for some zero-rated supplies; • An officer’s assessment was issued on 19 February 2020 for VAT under-declared of £160,211; • Penalties of £85,911 were also imposed; • As the behaviour was deemed to be deliberate, DCP was insolvent and he was held to be responsible, a personal liability notice was issued in relation to the penalties. • In addition, HMRC’s claim includes: o further VAT of £106,910 outstanding from April 2018, based on returns submitted to October 2019 and assessments raised for the period to the liquidation; o Corporation Tax due of £36,290 which dates from the year to 31 August 2014. • The statement of affairs, together with claims received, disclose other creditors totalling £470,585; 2.) On the 24th January 2020 he caused DCP to make payments totalling £13,000 that were to the benefit of himself and to the detriment of DCP’s creditors generally, at a time when he knew, or ought to have known, that DCP was insolvent, in that: •In October 2019 DCP entered into a debt management plan with suppliers, however shortly after this DCP was served with a number of county court judgments, statutory demands and winding up petitions. • In December 2019 DCP was unable to fund one of its main contracts and the decision was made to mutually terminate the contract so as not to worsen the position of creditors. • By 1st January 2020 DCP owed approximately £113,176 to HMRC in respect of unpaid CT and VAT. •On the 24th January 2020, DCP sought professional advice and the decision was taken to cease trading. • On the same day he withdrew £13,000 from DCP’s bank account, which he states was a payment to himself. •At the date of the Liquidation, 19 February 2020, a total of £894,566 was owed to creditors including £401,171 to HMRC and £410,477 to trade creditors.