LIBRA COMPUTING LIMITED

Iqbal RAHMAN

October 1964

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

4 Years 0 Month(s)

Disqualification starts from

6 March 2020

Improper conduct which resulted in their disqualification

From no later than its accounting period ending 30 November 2012 onwards, Iqbal Rahman (“Mr Rahman”) failed to ensure that Libra Computing Limited (“Libra”) met its financial commitments to HM Revenue & Customs ("HMRC") as regards Corporation Tax ("CT"), Section 455 Tax, VAT and PAYE/NIC and caused Libra to continue trading whilst withdrawing funds for the benefit of himself. As a result, Libra became unable to meet its financial commitments to HMRC as and when they became due; HMRC's claim in the liquidation on 20 November 2017 totalling at least £73,506. In particular:
Libra's professionally prepared accounts to 30 November 2012 (approved by Mr Rahman on 29 August 2013) record: o Post tax profit for the financial year of £49,690 o Director's remuneration of £21,333 and an increase in Mr Rahman's Director's Loan Account ("DLA") balance of £20,386 o Liabilities to HMRC totalling £41,307.
Libra's professionally prepared accounts to 30 November 2013 (approved by Mr Rahman on 27 August 2014) record: o Post tax profit for the financial year of £68,446 o Dividends in the sum of £40,000, director's remuneration of £12,000 and an increase in Mr Rahman's Director's Loan Account ("DLA") balance of £31,848 o Liabilities to HMRC totalling £48,224.
Libra's professionally prepared accounts to 30 November 2014 (approved by Mr Rahman on 27 August 2015) record: o Post tax profit for the financial year of £47,185 o Dividends in the sum of £52,000 and director's remuneration of £12,000 (no movement on the DLA) o Liabilities to HMRC totalling £48,629.
Libra's professionally prepared accounts to 30 November 2015 (approved by Mr Rahman on 28 September 2016) record: o Post tax profit for the financial year of £37,330 o Dividends in the sum of £70,000, director's remuneration of £9,704 and a decrease in Mr Rahman's DLA balance of £20,959; o Liabilities to HMRC totalling £81,110.
Libra failed to file a CT return for the year ending 30 November 2016 and the return for 30 November 2017 was not due at liquidation and HMRC's Proof of Debt does not include a CT or s455 Tax liability for these years. However, sales invoices show an increased level of sales in these years and it appears that Libra continued to make taxable profits and payments continued to be made to Mr Rahman and therefore Libra's CT/section 455 Tax liabilities continued to accrue.
From 01 December 2012 the amount due to HMRC, the only known creditor at liquidation, increased from £41,307 to at least £73,506 (excluding any additional CT and section 455 Tax liabilities for the period 01 December 2015 onwards).
In contrast, over the period 01 December 2012 to 30 November 2015 Mr Rahman received payments of £248,312 by way of dividend, (net) director's loan and/or salary, and over the subsequent period 01 December 2015 to liquidation, bank statements show that Mr Rahman received further payments of at least £164,942.