MR David MELLENCHIP

Disqualified from

2023-02-03

Date of birth on record

March 1976

David Mellenchip (“Mr. Mellenchip”) caused PSMedia Limited (“PSMedia”) to trade to the detriment of HM Revenue & Customs (“HMRC”) in respect of VAT by failing to make payments as and when they fell due whilst continuing to make payments to other creditors from at least 07 February 2020 to cessation of trade on 13 October 2021. Furthermore, he caused PSMedia to trade to the detriment of HMRC in respect of PAYE and NIC by failing to make sufficient payments whilst continuing to make payments to other creditors from 01 January 2020 to 13 October 2021, in that: VAT • PSMedia registered for VAT with HMRC on 12 December 2017. • According to HMRC Ledgers, PSMedia submitted VAT returns to HMRC for the quarters ending 31 December 2019 to 31 July 2021 (which fell due for payment from 07 February 2020 onwards) They detailed an amount due to HMRC of £49,247 with surcharges of £2,378. The ledger details that 4 payments and a VAT reclaim amounting to £4,862 were set against this liability with the last payment of £1,469 being made on 02 September 2020, leaving a net liability of £46,764. • HMRC Ledgers also detail assessment raised by HMRC for the quarter ended 31 October 2021 of £7,593 with a surcharge of £1,139. An Officers Assessment for £6,281 was also issued on 29 January 2020. The ledger details no payments in respect of these assessments. • He was aware of PSMedia’s increasing VAT liabilities as VAT returns were submitted to HMRC detailing the liabilities and conversations were held between him and HMRC during this period. • HMRC’s claim for outstanding VAT in the Liquidation details a total VAT liability of £62,344 and, surcharges amounting to £3,517 but covers a greater period of 01 July 2019 to Liquidation. PAYE • According to HMRC’s ledgers, PSMedia deducted £93,282 in PAYE, NIC and Student Loan deductions between 01 January 2020 and 13 October 2021. • In this period, PSMedia made 5 payments totalling £7,500 and received employment allowances totalling £4,000 against the amount outstanding leaving a liability of £81,782 for PAYE, NIC and Student Loan deductions. • HMRC’s claim in the Liquidations details a liability of £96,758 for PAYE, NIC and Student Loan deductions for the tax years 2019/2020, 2020/2021 and 2021/2022. Comparative Treatment • Between 01 September 2020 and 29 October 2021 bank statements show payments out of PSMedia’s bank account totalling £512,647. Of that amount £124,736 was paid to trade creditors, £217,765 was paid for employee wages and pension contributions, £111,702 was paid to him, £51,148 was paid to a former director and payments of £5,219 towards the company’s PAYE liability. Bank statements do not show any payments being made to HMRC towards the company’s VAT liability. • PSMedia’s last prepared accounts show that for the years ended 31 October 2019 and 2020 show its indebtedness to trade creditors stood at £12,823 and £12,697 respectively, indebtedness to other creditors stood at £26,368 and £23,095 respectively and its indebtedness to HMRC stood at £25,745 and £77,002 respectively. • At liquidation, PSMedia had liabilities outstanding of £15,805 to trade creditors, £56,172 to the bank and at least £168,524 to HMRC in respect of VAT (£65,860), PAYE (96,758) & Corporation Tax (£5,905).