MR Stephen John RUSSELL

Disqualified from

2020-07-22

Date of birth on record

September 1966

Between at least 15 July 2016 and 15 May 2019 Stephen Thomas Russell (“Mr Russell”) caused The Hannay Partnership Ltd (“THP”) to make misrepresentations to businesses in order to induce payments to THP in respect of advertising without providing any discernible benefit to those who placed and paid for advertisement in that: • THP cold called businesses in order to sell advertising space in its magazines. Potential advertisers were led to believe that THP represented or was acting on behalf of the emergency services. THP had no known connection to any of the emergency services; • Potential advertisers were led to believe that THP was a charity or not for profit organisation and/or that THP was raising money for the benefit of the emergency services. THP is not a registered charity and did not make any financial contribution to the emergency services or any other known charity. There is no evidence of any discernible benefit to the emergency services from THP’s activities; • Potential advertisers were led to believe that THP published and distributed thousands of magazines free of charge, both locally and further afield, particularly to waiting rooms in GP surgeries, dentists and hospitals as well as all advertisers receiving copies themselves. In the two-year period 2017-2018 THP printed a total of 650 magazines. In 2018 only circa 70 copies were distributed. The limited number of print runs, minimal distribution levels and lack of any region-specific advertising amount to advertisers receiving no discernible benefit from placing with THP; • Between 15 July 2016 and 15 May 2019 advertisers paid £1,467,317 into THP’s bank account. From at least 22 January 2018 to 15 May 2019 Stephen Thomas Russell (“Mr Russell”) caused The Hannay Partnership Ltd to trade to the detriment of HM Revenue and Customs (“HMRC”) in relation to Value Added Tax (“VAT”) and Corporation Tax (“CT”) in that: Value Added Tax (“VAT”) • Between 6 March 2017 and 22 January 2018 THP submitted VAT returns in respect of VAT periods 01/17, 04/17, 07/17 and 10/17 with a combined declared net VAT due totalling £81,861. The returns were submitted late and incurred surcharges totalling £6,307. In the same period THP made payments in respect of VAT totalling £56,239 leaving an outstanding balance at 22 January 2018 of £31,930; • THP failed to submit any further VAT returns from period 01/18 to 01/19 inclusive and incurred additional VAT liability totalling £127,070 in VAT assessments and surcharges, accruing a balance payable of £159,000; • THP failed to make any further payments to HMRC in respect of VAT; • HMRC has claimed a total of £237,720 in THP’s liquidation, £212,382 of which is claimed in respect of VAT, penalties and interest. Corporation Tax (“CT”) • Between at least 3 November 2016 and 1 November 2018 THP accrued an outstanding liability totalling £9,296 to HMRC in respect of CT due in respect of tax years ended 31 January 2016, 31 January 2017 and 31 January 2018 and filing penalties; • THP failed to make any payments at all in respect of its CT liability. • HMRC has claimed a total of £237,720 in THP’s liquidation, £9,526 of which is claimed in respect of CT, penalties and interest. Comparative Treatment • As at 22 January 2018 THP had an outstanding liability in respect of VAT of £31,929 and an outstanding liability in respect of CT of £6,796; • By 15 May 2019 THP’s liability in respect of VAT had increased to £159,000 and in respect of CT to £9,526; • Analysis of THP’s bank statements shows that in the period from 22 January 2018 to 15 May 2019 THP received £546,760 into its bank account and expended £550,589. During the same period THP made no payments at all to HMRC in respect of either of its VAT or CT liabilities; • HMRC has claimed £237,720 in THP’s liquidation and is the majority creditor.