MR NIKOLAS PRESTON

Disqualified from

2020-10-19

Date of birth on record

December 1981

Between 05 December 2017, the date of the commencement of the company voluntary arrangement (“CVA”), and 19 March 2019, the date of the winding-up order, Nikolas Preston (“Mr Preston”) failed to ensure that Contract Joinery ( Lancashire) Ltd (“CJL”) complied with its statutory obligations and CVA provisions to pay HM Revenue & Customs (“HMRC”) as and when due and he caused CJL to trade to the detriment of HMRC, resulting in its liability increasing from £300,036 to £901,574. In that: CREDITORS VOLUNTARY ARRANGEMENT (“CVA”) • CJL was subject to a CVA on 05 December 2017 • HMRC Ledgers show that as at the date of the CVA, £183,253 was owed in respect of VAT dating back to the return for the quarter ended 31 May 2016 due for payment on 07 July 2016. The total CVA liability in respect of VAT stood at £197,829 including surcharges. The last payment towards VAT was on 06 October 2017 for £31,402 • In respect of PAYE, £119,657 was outstanding at the date of the CVA for the 2016/17 and 2017/2018 tax year. The last payment made towards PAYE prior to the CVA was on 22 September 2017 for £16,864. • The CVA proposal included a clause which stated that all statutory returns and payments due to HMRC post approval should be provided on or before the date they fell due. POST CVA • Between the date of the CVA and the cessation of trade, CJL submitted all VAT returns due before liquidation, but no payments were made in respect of those returns, resulting in a total post CVA VAT liability of £177,425, including surcharges. • In respect of PAYE, monthly RTI returns were submitted from December 2017 until August 2018, one payment of £18,065 was made on 22 January 2018 against a post CVA liability of £326,488, a further £3,000 in employment allowances was set against this liability, resulting in £305,423 outstanding. • By failing to submit all returns on time or make the corresponding payments, CJL was in breach of the terms of the CVA. DIFFERENTIAL TREATMENT • Accounts filed at Companies house for the years ended 31 May 2016 and 31 May 2017, show trade creditors of £180,935 and £242,185 respectively. In the same accounting periods filed accounts show that HMRC liabilities stood at £191,841 and £278,777 respectively • The Statement of Affairs in the CVA on 05 December 2017 shows Trade creditors had reduced to £122,104 but HMRC Liabilities had increased to £300,036. • By the Voluntary Liquidation on 19 March 2019, Trade creditors had increased to £122,770 and HMRC Liabilities had increased to £901,574 • An analysis of the company’s bank accounts has shown that in the period between 05 December 2017 and the liquidation, the company made total payments of £1,485,015. Of which £810,696 was paid to Trade creditors, £42,172 was paid to the Director and £40,644 was paid to HMRC