MR Patrick MACKIN

Disqualified from

2024-04-17

Date of birth on record

July 1981

Patrick Mackin (“Mr Mackin”) caused Bluenet Optical Solutions Limited (“Bluenet”) to trade to the detriment of HM Revenue and Customs (“HMRC”) by failing to make payments as and when they became due in respect of VAT from at least 07 January 2019 to 19 May 2022 (the date of the Liquidation) and in respect of PAYE and NIC from at least 22 May 2019 to 19 May 2022. In that:? ? VAT? • Analysis of HMRC records shows that as at 30 November 2018, Bluenet’s liability for VAT was £25,956.57. VAT returns submitted to HMRC for the quarters ended 30 November 2018 to 28 February 2021 and due for payment from 07 January 2019 detail a further amount due to HMRC of £250,229.78. ? • Analysis of Bluenet’s bank statements between 30 November 2018 and 19 May 2022 has shown payments in respect of VAT amounting to £70,647.73, with the last payment being made on 16 October 2020. £33,481.09 of this amount was set against quarters prior to the period of the allegation, £33,100.04 was set against the return for the quarter ended May 2020?and the balance of £4,066.60 was?set against the return for the quarter ended November 2018.?? • HMRC have made a claim in the Liquidation amounting to £213,132.67 including surcharges of £23,223.78. ? PAYE • Analysis of HMRC records shows that as at 31 March 2020 Bluenet’s liability for PAYE was £14,861.62. • PAYE/NIC of £14,861.62 was due for the 2019/2020 tax year and no payments were made, resulting in £14,861.62 outstanding.???? • PAYE/NIC of £115,248.92 was due for the 2020/2021 tax year, allowances were deducted of £2,246.08 and payments were made totalling £18,886.99 resulting in £108,977.47 outstanding.???? • PAYE/NIC of £73,704.11 was due for the 2021/2022 tax year, allowances were deducted of £1,180.41 and no payments were made resulting in £181,501.17 outstanding.? • At the date of liquidation, a total of £181,518.92 was outstanding to HMRC?in respect of PAYE and NIC, including £17.75 in interest. ? Comparative Treatment? • In the period between 07 January 2019 and 22 June 2022 (the date the company bank account was last used) total receipts into Bluenet’s bank account were £2,533,074.24. £2,332,543.67 was deposited into the company account as turnover, a further £38,000 was deposited from another bank account belonging to Bluenet, £50,000 was a Bounce Back Loan and £2,000 was deposited by Mr Mackin.? • In the period 07 January 2019 to 22 June 2022, payments out of Bluenet’s bank account totalled £2,564,470.31. Payments to HMRC totalled £89,534.72 (£70,647.73 in respect of VAT and £18,886.99 in respect of PAYE/NIC). Information from the company accounts shows payments to other creditors/overheads totalled £728,107.07 and payments in respect of subcontractors/wages totalled £1,654,609.84. • The balance on the director’s loan account was nil at 31 October 2020 and increased to a balance of £109,687.75 owed to Bluenet by Mr Mackin at 31 October 2021, remaining at this amount at liquidation.??? • Analysis of HMRC records shows that as at 31 October 2019, total liabilities to HMRC were at least £73,673.01 and at 19 May 2022 total liabilities to HMRC had increased by £306,116.96 to £379,789.97. Analysis of company records shows as at 31 October 2019 liabilities to ‘other’ creditors were £64,248 and at 19 May 2022, they had decreased by £23,288 to £40,960.? • According to the available information, Bluenet went into liquidation with liabilities of at least £626,916.36. HMRC has filed a claim in the liquidation of £585,956.36, of which at least £350,214.52 is due to HMRC in respect of VAT and £188,554.27 is due to HMRC in respect of PAYE/NIC, other creditors were owed £40,960 of which £40,000 is a government backed Bounce Back Loan.?