MR Charles Mackay BORTHWICK

Disqualified from

2024-06-18

Date of birth on record

December 1977

Charles Mackay Borthwick (“Mr Borthwick”) caused Cue Joinery Limited (“CJL”) to trade to the detriment of HM Revenue and Customs (“HMRC”) from 23 May 2020 (when the Construction Industry Scheme (“CIS”) Tax) for the tax month ended 05 May 2020 fell overdue for payment to HMRC), from 08 August 2020 when the Value Added Tax (“VAT”) liabilities for the VAT quarter ended 06/20 fell overdue for payment to HMRC) and from 23 July 2021 (when the Pay As You Earn (“PAYE”)/National Insurance Contributions (“NIC”)) for the tax month ended 05 July 2021 fell overdue for payment to HMRC) to cessation of trading on or around 30 September 2022. CIS CJL submitted CIS returns to HMRC for twenty three consecutive tax months from the tax month ended 05 May 2020 to 05 March 2022 disclosing CIS tax liabilities totalling £57,295 due to HMRC; HMRC issued a CIS assessment of £1,671 for the tax month ended 05 April 2022; Between 22 October 2020 and 28 April 2021 CJL made payments totalling £3,813 in respect of its CIS tax liabilities. HMRC allocated £2,313 to an earlier tax year, 2019/2020 and £1,500 to the tax month ended 05 April 2021; The oldest full CIS tax liability outstanding at cessation of trading was for the tax month ended 05 May 2020 of £4,040 which fell due for payment to HMRC on 23 May 2020; At liquidation CJL’s CIS tax liabilities (excluding interest and penalties) that fell due for payment to HMRC prior to cessation of trading totalled £57,466; VAT CJL submitted VAT returns to HMRC for ten consecutive VAT quarters ended: 12/19 (£1,971), 03/20 (£3,517), 06/20 (£500), 09/20 (£10,728), 12/20 (£1,166), 03/21 (£1,481),06/21 (£7,564), 09/21(£7,221), 12/21 (£13,873), 03/22 (£5,154) disclosing VAT liabilities due to HMRC totalling £53,175. HMRC applied surcharges totalling £7,109; HMRC issued VAT and surcharge assessments totalling £9,694 for the VAT quarter ended 06/22; Between 04 June 2021 and 08 August 2021 CJL made payments to HMRC totalling £6,430 in respect of its VAT liabilities. HMRC applied payments totalling £1,971 to the VAT quarter ended 12/19 clearing the liability in full, £296 to the 12/19 surcharge liability clearing the liability in full, £1,822 towards the VAT liability for the VAT quarter ended 03/20 of £3,517 leaving a balance of £1,695 at liquidation, £75 to the surcharge liability for the VAT quarter ended 06/20 clearing the liability in full, £2,266 to the VAT quarter ended 06/21 of £7,564 leaving a balance of £5,298 at liquidation; The oldest VAT liability outstanding at cessation of trading was for the VAT quarter ended 06/20 of £500 which fell overdue for payment to HMRC on 08 August 2020; At liquidation CJL’s VAT liabilities that fell due for payment to HMRC prior to cessation of trading totalled £63,549; PAYE/NIC CJL submitted Real Time Information (RTI) returns to HMRC for the tax year 2021/2022 (£72,309) and for five consecutive tax months from the tax month ended 05 May 2022 to 05 September 2022 (£22,651) disclosing PAYE/NIC liabilities totalling £94,960 due to HMRC; Between 28 May 2021 and 27 October 2021 CJL made payments totalling £11,986 in respect of its PAYE/NIC liabilities. HMRC allocated £1,500 to the tax month ended 05 May 2021,£1,500 to the tax month ended 05 June 2021,£2,995 to the tax month ended 05 August 2021, £2,995 to the tax month ended 05 September 2021 and £2,995 to the tax month ended 05 October 2021; HMRC applied Employment Allowance credits totalling £9,000 to the tax months ended: 05 May 2021, 05 June 2021, 05 July 2021, 05 May 2022, 05 June 2022, 05 July 2022; The oldest part PAYE/NIC tax liability outstanding at cessation of trading was for the tax month ended 05 July 2021 of £5,812 which fell due for payment to HMRC on 23 July 2021; At liquidation CJL’s PAYE/NIC liabilities (excluding interest and penalties) that fell due for payment to HMRC prior to cessation of trading totalled £73,974; Differential Treatment At the date of liquidation, the total amount owed to unsecured creditors is at least £291,030 of which £233,056 (includes £2,486 winding up petition costs) is owed to HMRC in respect of CIS Tax, VAT, PAYE/NIC, Corporation Tax liabilities and interest and penalties; CJL’s bank account statements show from 22 June 2020 (first payment from the bank account after 23 May 2020) to 30 September 2022 (date of last transaction on bank account) at least £517,170 was paid out of the Company’s bank account to various parties of this amount at least £29,000 was paid to Mr Borthwick or to his personal benefit, £145,450 was paid to connected companies and £320,491 was paid to various parties. Whilst over the same period £3,813 was paid to HMRC in respect of its CIS tax liabilities, £6,430 was paid to HMRC in respect of its VAT liabilities and £11,986 was paid to HMRC in respect of its PAYE/NIC liabilities.