HIERARCHY CONSULTANCY LIMITED

Musa NSUBUGA

September 1979

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

3 Years 6 Month(s)

Disqualification starts from

10 December 2019

Improper conduct which resulted in their disqualification

Musa Nsubuga ("Mr Nsubuga") failed to ensure that Hierarchy Consultancy Limited ("Hierarchy") complied with its statutory obligations to submit timely and accurate returns and make payments when due to HM Revenue & Customs (“HMRC”), and caused Hierarchy to trade to the detriment of HMRC, the majority creditor at liquidation, from at least 1 May 2015 in respect of Corporation Tax, and 7 December 2015 in respect of VAT, until liquidation on 30 January 2019. As a result, Corporation Tax liabilities in the sum of at least £39,895, and VAT in the sum of at least £8,389, remained overdue and outstanding on liquidation. In that: Corporation Tax
A Corporation Tax return was submitted for the accounting period ended 31 July 2014 recording a total liability due to HMRC in the sum of £10,262. Payments totaling £1,500 were made by Hierarchy towards the Corporation Tax liability for this accounting period, reducing the outstanding balance for this period to £8,762.
A Corporation Tax return was submitted for the accounting period ended 31 July 2015 recording a total liability due to HMRC in the sum of £10,468. Payments totaling £4,100 were made by Hierarchy towards the Corporation Tax liability for this accounting period, reducing the outstanding balance for this period to £6,548.
A Corporation Tax return was submitted for the accounting period ended 31 July 2016 recording a total liability due to HMRC in the sum of £15,222. No payments were made by Hierarchy towards its outstanding Corporation Tax liabilities due for this period.
A Corporation Tax return was submitted for the accounting period ended 31 July 2017 recording a total liability due to HMRC in the sum of £9,361. No payments were made by Hierarchy towards its outstanding Corporation Tax liabilities due for this period.
A total Corporation Tax liability in the sum of at least £39,895 remained overdue and outstanding as at liquidation. VAT
Hierarchy filed a VAT return in respect of period 10/15 recording a liability due in the sum of £3,775 owing. Payments totalling £1,559 were allocated towards this VAT period leaving the sum of £2,216 outstanding and overdue as at liquidation.
Hierarchy filed VAT returns in respect of periods 04/16 and 07/16 confirming VAT liabilities in the sum of £6,173 were due inclusive of surcharges. These liabilities remained outstanding in full on liquidation.
Nil returns were filed in respect of periods 04/17 to 10/18 on 23 November 2018. These returns, with the exception of period 10/18, were all filed late. Period 04/17
HMRC has confirmed that period 04/17 covered a nine month period from 1 August 2016 to 30 April 2017.
Hierarchy filed a nil return in respect of period 04/17 on 23 November 2018.
Hierarchy's bank account which was opened on 8 February 2017 confirms that that receipts were received in respect of services provided by the Company totalling £29,040 between 8 February 2017 and 30 April 2017.
It is apparent that the nil return filed by Hierarchy was inaccurate based on the level of receipts paid into its bank account in consideration for services provided for at least part of VAT period 04/17. Periods 07/17 and 10/17
Hierarchy filed nil returns in respect of periods 07/17 and 10/17 on 23 November 2018.
He claims that the Company did not trade during periods 07/17 and 10/17. This is confirmed by Hierarchy's bank statements. Periods 01/18 to 10/18
Hierarchy filed nil returns in respect of periods 01/18 to 10/18 on 23 November 2018.
Hierarchy's available sales invoices record that Output Tax in the sum of £14,697 was due on services provided by Hierarchy during these periods.
It is apparent that the nil returns filed by Hierarchy in respect of VAT periods 01/18 to 10/18 were inaccurate based on the level of Output Tax on services provided by Hierarchy during these periods. Comparative treatment
HMRC is the majority creditor in the liquidation having claimed the total sum of £52,052, the only other creditors being Hierarchy's accountants who were owed the sum of £432.
Hierarchy's annual accounts record that the Company's outstanding Corporation Tax liability increased from £25,207 as at 31 July 2015 to £45,723 as at 31 July 2017.
Hierarchy's annual accounts record that the Company's outstanding VAT liability increased from £12,963 as at 31 July 2015 to £22,395 as at 31 July 2017. Hierarchy's sales invoices record that Output Tax in the sum of at least £14,697 was incurred after this time.
From 1 August 2017 until liquidation on 30 January 2019, the Company's bank account received credits totalling £113,423 and expended £91,612 of which no payments were made to HMRC from the account in respect of the Company's liabilities to HMRC during this same period.
He received net payments from Hierarchy totalling £71,730 over the same period.
A Director's Loan Account estimated in the sum of £53,413 remained overdrawn and owing to Hierarchy as at the date of liquidation.