POWELL MANAGEMENT & CONSULTANCY SERVICES LTD

ROBERT JOHN PAUL FARRELL

January 1976

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

11 Years 0 Month(s)

Disqualification starts from

5 April 2023

Improper conduct which resulted in their disqualification

Robert John Paul Farrell (‘Mr Farrell’) caused Powell Management & Consultancy Services Ltd (‘Powell’) to breach the conditions of the Bounce Back Loan (“BBL”) scheme by obtaining a second BBL of £50,000 when he knew or ought to have known that Powell failed to be eligible for the loan. In that: • The BBL, launched in May 2020, had been introduced to help smaller businesses impacted by COVID-19. It aimed to assist businesses to borrow between £2,000 up to a maximum of £50,000. • On 12 May 2020 Powell made an application for a £45,000 BBL and the funds were subsequently paid to POWELL’s bank account on 18 May 2020. • On 20 August 2020 and contrary to the terms of the scheme POWELL submitted a second BBL application with another lender and declared that the business had not already received funds under the BBL. • On 24 August 2020 POWELL received £50,000 into its bank account when it was not entitled to receive those funds. • Both loans obtained under the scheme remained outstanding at the date of liquidation in the total sum of £95,000 Robert John Paul Farrell (‘Mr Farrell’) failed to ensure Powell Management & Consultancy Services Ltd (‘Powell’) maintained and/or preserved adequate accounting records or in the alternative, following liquidation, he failed to deliver up to the Liquidator when required such records as were maintained and/or preserved. As a result, it has not been possible to: • Determine the reason for payments totalling £1,621,335 from Powell’s bank accounts between 21 January 2020 and 01 October 2020 • Determine the reason for receipts totalling £1,621,408 into Powell’s bank accounts between 27 January 2020 and 14 September 2020. • Verify whether £95,000 introduced into the company between 18 May 2020 and 24 August 2020 by way of a Government Guaranteed Bounce Back Loan’s and which were granted with the express intention of providing economic benefit to the business were utilised for this purpose. • Verify the existence, ownership, value and whether there has been an accurate disclosure of Powell’s assets • Verify the true liability to HM Revenue and Customs (“HMRC”) in respect of Value-Added Tax and in particular. i) establish whether Powell held evidence of taxable supplies received during the VAT period 04/20 ii) establish the amount of input tax that ought to have been claimed by Powell for the VAT period 04/20 iii) Verify HMRC’s decision to disallow input tax on Powell’s VAT return for the periods 04/20 which resulted in a underdeclared VAT liability in the sum of £151,453 • Verify the true liability to HMRC in respect Corporation Tax, or income tax deducted from the emoluments of employees and subcontractors via Pay As You Earn or the Construction Industry Scheme • Establish the extent of the Mr Farrell’s remuneration or the final balance of any directors’ loan accounts