Surrey plumber jailed for tax evasion

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Surrey plumber jailed for tax evasion

23 July 2012 15:50
A Surrey plumber has been jailed for 12 months for tax evasion.
Melvyn Careswell (49) of Epsom set up a company, MPC Heating and Plumbing. He traded as a self employed plumber, but never registered his earnings with HM Revenue & Customs (HMRC). Investigators discovered that over a five-year period he evaded around £50,000 of Income Tax.

Chris Martin, HMRC Assistant Director, Criminal Investigation, said:

“Careswell stole from UK taxpayers by failing to pay tax due on his earnings and now he must face the consequences of his actions in jail. HMRC is clamping down on plumbers and those in other trades who attempt to commit tax evasion, and the sentence given to Careswell will act as a deterrent. I ask anyone with information about suspected tax fraud to call the Tax Evasion Hotline on 0800 788 887.”

This sentencing follows a number of HMRC investigations after the analysis of data acquired by HMRC targeting plumbers, gas fitters and heating engineers who failed to take advantage of the opportunity offered during last year’s Plumbers Tax Safe Plan (PTSP), to put their tax affairs in order on the best possible terms. Those who came forward have already paid over £4 million in outstanding tax.

Mike Wells, HMRC Director of Risk and Intelligence Services, said:

“We want people targeted by any HMRC campaign to come forward and use the opportunity to put the record straight and pay any tax due on the best possible terms. It really is better for people who owe tax to come to HMRC, before we come and find you.”

Careswell was arrested on 5 August 2011. He pleaded guilty to the offence and was sentenced to 12 months’ imprisonment at Kingston Crown Court on Friday (20 July 2012).

Confiscation proceedings are underway.

Notes

1. Melvyn Peter Careswell (23.11.62), a plumber, of 15 Poplar Crescent, Epsom, Surrey, KT19 9ER was charged with fraudulent Evasion of Income Tax contrary to the Taxes Management Act 1970.

2. He pleaded guilty to £50,000 fraudulent tax evasion and was sentenced to 12 months’ imprisonment at Kingston Crown Court on 20 July 2012.

3. Nearly £510 million has been raised by HMRC from voluntary disclosures, and a further £120 million from follow-up activity. Campaigns launched so far have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, electricians and online traders.

4. Those in the target groups wishing to let HMRC know of the intention to make a voluntary disclosure can:
•    Use the forms on HMRC’s website http://www.hmrc.gov.uk/campaigns/notify.htm
•    Phone HMRC on 0845 601 2944 with details such as: name, address, National Insurance number, telephone number, date of birth and Unique Taxpayer Reference (UTR)
5. The benefit of the campaigns is that those who make a full disclosure:
•    will be offered a simple and straightforward way to put their tax affairs right
•    may not be charged a penalty at all, with most receiving a penalty of no more than 10 per cent of tax owed

6. Once disclosure opportunities close, taxpayers who have not come forward but are found to have unpaid tax liabilities will face higher penalties, rising to 100 per cent of the tax unpaid or, potentially, criminal prosecution.

7. Further information on HMRC campaigns can be found at : http://www.hmrc.gov.uk/campaigns/news.htm

8. Anyone with information about suspected tax fraud can call the Tax Evasion Hotline on 0800 788 887

Chester director disqualified for 11 years for issuing false invoices (Insolvency Service)

Chester director disqualified for 11 years for issuing false invoices

10 July 2012 14:00
Simon Wilson Grimes from Chester, who ran a Wrexham garden products wholesaler has been disqualified from acting as a company director for 11 years, following an investigation by The Insolvency Service’s Company Investigations Team in Manchester.
Mr Grimes, 54, of Belle Vue Lane, Guilden Sutton, Chester, was the director of West Meters Limited, based near Wrexham, North Wales, which went into liquidation on 28 August 2010. He has given an undertaking barring him from acting as a company director, and from managing or in any way controlling a company. The ban will last until 25 July 2023.
The company supplied home and garden clocks, thermometers and ornaments to local and national home and garden retailers. It used a finance company for up front payment of its sales invoices, to improve its cash flow before customers had paid for goods supplied.
The investigation revealed that the company had invented invoices for non-existent sales, and had then received funding from the finance company for these false invoices. The Insolvency Service calculated that the company received at least £444,000 against false invoices.
By the time the company went into liquidation it had run up debts of £1,089,676 and had assets of only £9,520.
In signing the undertaking, Mr Grimes did not dispute that:
• He was responsible for West Meters Limited raising false sales invoices between January 2009 at the latest and 27 May 2010
• That practice was a breach of the company’s agreement with its finance company ;

• The total sum known to have been paid to West Meters by its finance company against false invoices, and outstanding at 10 June 2010, was at least £444,212
Claire Entwistle, Director of Company Investigations North at The Insolvency Service, commented:
“The Insolvency Service deals robustly with directors who unfairly gain advantage over competitors and harm their creditors, by using unacceptable financial practices.
The protection of limited liability is available to those who comply with their obligations as company directors. If those obligations are ignored, the protection will be withdrawn, as Mr Grimes has found to his cost.”
Ends
Notes
1. West Meters Limited was incorporated on 11 August 1978 and went into liquidation on 28 August 2010.
2. Simon Wilson Grimes was the only director of the company between 1 February 2005 and liquidation.
3. Invoice financing (sometimes referred to as factoring) is a routine commercial practice, whereby a trader notifies its sales invoices to a finance company, which:
•    advances to the trader a percentage of the value of sales invoices notified
•    collects payment for the invoices directly from the trader’s customers, or indirectly via the trader (according to the type of invoice financing agreement)
•    then pays the trader the remaining balance, less its own charges
4. Disqualification undertakings have the same effect as disqualification orders made by a court, and are therefore legally binding. Without obtaining permission from a court, a disqualified person may not:
•    act as a director of a company
•    take part, directly or indirectly, in the promotion, formation or management of a company
•    be a liquidator or administrator of a company
•    be a receiver or manager of a company’s property
Further information on director disqualifications and restrictions can be found on The Insolvency Service’s website, here.

Offshore tax dodger to pay back over £800k (HMRC)

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Offshore tax dodger to pay back over £800k

17 July 2012 10:00
We have been asked to point out that a property developer, who admitted tax fraud, deliberately failed to disclose a Swiss bank account and evaded inheritance tax but did not close a secret Swiss bank account in an attempt to avoid detection.
Michael Shanly was ordered to pay fines and compensation totalling £830,000, plus costs, at Wood Green Crown Court on 4 July.

Michael Shanly had previously failed to disclose the Swiss offshore account to HM Revenue & Customs (HMRC) during a civil enquiry where he was found to owe HMRC around £2 million. This account was discovered when information about UK taxpayers with HSBC bank accounts in Geneva was handed over to HMRC. Checks were then made to establish whether these account-holders had declared and paid what they owed.

Property millionaire Shanly, who features on the Sunday Times Rich List, opened the account in his name and made use of it for several years. It later contained only his mother’s money. Four years after his mother died, he closed the account, and transferred all the money – evading £430,000 Inheritance Tax.

David Gauke, Exchequer Secretary to the Treasury, said:

“Most hard-working taxpayers are rightly angry that a small minority think that they are above the tax rules the rest of the country plays by. This case proves that the Government will track down and take action against those who try to get out of paying the tax they owe. The message is clear: even if you try to hide money abroad, HMRC will find you.”

Chris Martin, Assistant Director, HMRC Criminal Investigation, said:

“Mr Shanly – like others – took advantage of his offshore account to hide money and evade tax that was owed to the public purse. In doing so he eventually evaded paying tax. He thought it was out of reach of HMRC and hoped we would never find it. However, we discovered it, and he will pay a heavy penalty.

“HMRC is continually receiving information from various sources and working together with partner agencies here and abroad. Those attempting to hide offshore accounts must be aware that HMRC is closing in on offshore assets.”

This is the first case to come before a court using the data obtained by HMRC on UK citizens with HSBC bank accounts in Geneva. HMRC criminal investigators continue to review the information obtained and further prosecutions are likely.

In sentencing Recorder Rosamund Horwood-Smart QC said:

“In this court there are no rules just for the rich and no rules just for the poor… the tax system relies on voluntary and honest disclosure of tax affairs and it applies to all equally.”

Notes

1. HMRC obtained the offshore HSBC bank account data through tax exchange agreements with France in April 2010.

2. HMRC offered many disclosure opportunities, two of which, in 2008 and 2010, were – Offshore Disclosure Facility and New Disclosure Opportunity – for those with money offshore to come forward and pay anything that was due. These together raised almost £500 million.

3. Defendant’s details: Michael James Shanly, DOB 30/12/1945, of Hurley (Maidenhead) in Berkshire. He admitted one count of cheating the public revenue at Wood Green Crown Court on Wednesday 4 July 2012.

Over £30m will be recovered from tax dodgers (HMRC)

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Crackdown launched on tax dodgers

05 July 2012 09:56
Over £30m will be recovered from tax dodgers as HM Revenue & Customs (HMRC) launches new taskforces around the country.
The taskforces will target traders who do not pay the right amount of tax in:
•    Scottish pubs and nightclubs
•    Hair and beauty businesses in Northern Ireland
•    The motor trade in South Wales, South West, Yorkshire, Nottinghamshire and the North East
•    Resturants in South Wales and South West
Taskforces are specialist teams that undertake intensive bursts of activity in specific high risk trade sectors and locations in the UK. The teams will visit traders to examine their records and carry out other investigations.

The Exchequer Secretary to the Treasury, David Gauke, said:

“At a time when we are trying to rebalance the public finances and most hard-working people are making a contribution by paying the right tax, it is just not fair that a small minority try to dodge their responsibilities.

“These new taskforces are funded by the Government’s investment in HMRC of over £900m to crack down on avoidance and evasion. Their dedicated teams are on track to collect more than £50m from tax avoiders and evaders through the taskforces launched last year and expect to collect £30m in unpaid taxes through those launched today.”

HMRC’s Mike Eland, Director General Enforcement and Compliance, said:

“Everyone needs to pay the taxes they owe in full – these new taskforces will help us crack down on the minority who have chosen to break the rules. If you have paid all your taxes you have nothing to worry about. But deliberately evading tax you should be paying can land you with not only a heavy fine but possibly a criminal prosecution as well.

“This is not an empty threat – HMRC can and will track you down if you choose to break the rules.”

HMRC launched 12 taskforces in 2011/12. Thirty will follow in 2012/13. HMRC is on target to collect more than £50m as a result of the taskforces launched in 2011/12.

If you are aware of someone who is evading their taxes you can tell HMRC via the Tax Evasion Hotline by phone, on 0800 788 887, email or by post. Full details can be found at http://www.hmrc.gov.uk

Notes
1. Taskforces bring together various HMRC compliance and enforcement teams for intensive bursts of activity targeted at specific sectors and locations where there is evidence of high risk of tax evasion. The first taskforce targeted the restaurant trade from 12 May 2011.

2. The taskforces are part of HMRC’s broader work to tackle evasion and avoidance which includes campaigns, Managing Deliberate Defaulters and offshore penalties. They are a result of the Government’s £917m spending review investment to tackle tax evasion, avoidance and fraud from 2011/12, which aims to raise an additional £7bn each year by 2014/15.

3. Compliance activity through taskforces is 1:1 and targets the highest-risk cases in a particular sector and location, typically focusing on groups of up to around 300 customers.

4. 12 taskforces were launched in 2011/12 looking at restaurants (London, North West, Scotland) fast food outlets (London, Scotland), scrap metal dealers (Scotland), fraudulent repayments (London), landlords (North West, Scotland), construction (North West), property transactions (London) and overdue returns (South East).

5. Further taskforces were launched in May 2012 looking at indoor and outdoor markets in London, taxi firms in Yorkshire and East Midlands, property rentals in East Anglia, London, Yorkshire and the North East and restaurants in the Midlands.

A property developer, who closed a secret Swiss bank account in an attempt to avoid detection, has pleaded guilty (HMRC)

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Offshore tax dodger to pay back over £800k

05 July 2012 09:41
A property developer, who closed a secret Swiss bank account in an attempt to avoid detection, has pleaded guilty and been ordered to pay fines and compensation totalling £830,000, plus costs at Wood Green Crown Court.
Michael Shanly previously failed to disclose a Swiss offshore account to HM Revenue & Customs (HMRC), during a civil enquiry where he was found to owe HMRC around £1.5m. This was discovered when information about UK taxpayers with HSBC bank accounts in Geneva was handed over to HMRC. Checks were then made to establish whether these account holders had declared and paid what they owed.

Property millionaire Shanly, who features on the Sunday Times Rich List, opened the account with his and his mother’s money. When his mother died, he later closed the account, and transferred all the money – avoiding £430,000 Inheritance tax.

Chris Martin, Assistant Director, HMRC Criminal Investigation said:

“Mr Shanly – like others – took advantage of his offshore account to hide money that was owed to the public purse. He thought it was out of reach of HMRC and hoped we would never find it. However we discovered it, and he will pay a heavy penalty.”

“HMRC are continually receiving information from various sources and working together with partner agencies here and abroad. Those attempting to hide offshore accounts must be aware that HMRC are closing in on offshore assets.”

This is the first case to come before a court using the data obtained by HMRC on UK citizens with HSBC bank accounts in Geneva. HMRC criminal investigators continue to review the information obtained and further prosecutions are likely.

In sentencing Recorder Rosamund Horwood-Smart QC said:

“In this court there are no rules just for the rich and no rules just for the poor… the tax system relies on voluntary and honest disclosure of tax affairs and it applies to all equally.”

Notes

1. HMRC obtained the offshore HSBC bank account data through tax exchange agreement with France in April 2010.

2. HMRC offered many disclosure opportunities, two of which in 2008 and 2010 were – Offshore Disclosure Facility and New Disclosure Opportunity – for those with money offshore to come forward and pay anything that was due. These together raised almost £500m.

3. Defendant’s details: Michael James Shanly, DOB 30/12/1945 of Hurley (Maidenhead) in Berkshire. Convicted of one count of cheat the public revenue, contrary to Common Law and at Wood Green Crown Court on Wednesday 4 July 2012.

Testing time for fuel fraud (HMRC)

Testing time for fuel fraud

04 July 2012 14:30
An international search for a new fuel marker to help in the fight against diesel fraud has been announced by revenue authorities in the United Kingdom (UK) and the Republic of Ireland (ROI).
Millions of pounds in revenue are lost each year in the UK and the ROI through fuel laundering – the removal of the chemical markers from low duty diesel – to sell it on as road fuel.

Working in partnership, HM Revenue & Customs (HMRC) in the UK and the Revenue Commissioners in ROI are seeking submissions aimed at finding a replacement for the current fiscal fuel markers, which are added to fuels with lower duty rates. In response to the continuing threat to revenues a Memorandum of Understanding between the revenue authorities in both countries was signed in May 2012. This set a framework for the project to identify an improved marker for use by both countries.

Andy Wiggins Oils Policy team leader, HMRC said:

“Although the UK’s current fuel marker is actually one of the better quality markers in use, we are not complacent and appreciate the need to keep one step ahead of fuel launderers.

“Consequently the search for an even more robust marker capable of foiling 21st Century fuel launderers is essential to ensure that opportunities for fraudsters attempting to exploit fuel supplies are reduced and illicit fuel can be detected.”

Revenue Commissioner Liam Irwin said:

“Fuel laundering and trading in illicit fuel represents a significant threat to the Exchequer and hurts legitimate businesses. We are determined to take every action necessary to stamp out this form of criminality. It’s a problem common to both Ireland and the UK and the search for a more resistant marker will be an important element in combating this form of evasion.”

The UK and the ROI revenue authorities published a joint ‘Invitation to Make Submissions’ (IMS) on 28th June which set out details of how this process will run.

Notes f

1. A reduced or rebated rate of mineral oil tax applies to oil supplied for use in commercial and domestic heating systems as well as in ships, fishing boats, trains and certain vehicles used for the most part by the agricultural sector and construction industry. Currently such mineral oil is marked by the addition of specified markers, in both the UK and the Republic of Ireland, to indicate that the fuels are subject to the lower tax rate and to detect the fraudulent use of these fuels as a propellant in motor vehicles.

2. A Memorandum of Understanding between the UK and Ireland revenue authorities was agreed and signed in late May 2012. This set a framework for the project to identify an improved marker via the IMS.

3. The ‘Invitation to Make Submissions’ is published in the Official Journal of the European Union (OJEU). It is the online journal published in all members’ state languages with around 2,500 notices published each week, including similar invitations to make submissions. It is widely read by businesses, universities and research bodies.

A £500,000 tax fraudster, who pretended to have dementia in an attempt to delay his trial, has been jailed

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A £500,000 tax fraudster, who pretended to have dementia in an attempt to delay his trial, has been jailed today.
Samuel Jones (53) and his wife Lorraine Jones (47) had failed to declare income tax, pay National Insurance Contributions and VAT for 10 years before they were arrested by HM Revenue & Customs (HMRC) investigators.

The couple denied running a tarmac business and claimed their money was from inheritance and gambling. During this time the Jones’s built a £1.6 million portfolio of eleven properties in the Weston Super Mare and Bridgwater areas, and invested £1.4 million cash in various bank accounts. They purchased three Porsche 911s using false names and bought a Range Rover and several Mercedes E, B and ML models.

Shortly before their trial was due to commence in March 2011, Samuel Jones submitted a note to the court detailing his ‘early stages of dementia’. His ‘illness’ was in fact a stalling tactic to prevent the trial taking place. Subsequent medical testing, including memory tests that Mr Jones tried to fail on purpose, showed he does not have dementia and was fit for trial.

On the first day of the trial at Bristol Crown Court (21 May 2012) Lorraine Jones submitted a late ‘guilty’ plea. She was jailed for three years and six months today. Her husband was found guilty on 30 May 2012 and was sentenced to four years in jail today.

Simon De Kayne, HMRC Assistant Director Criminal Investigation, said:

“This couple had a blatant disregard for the UK tax system; they simply didn’t bother with it. This gave them a completely unfair and illegal advantage over business competitors and robbed the Exchequer of vital revenue. At the same time they amassed a sizeable property and financial portfolio which was largely funded by their criminality.

“Samuel Jones showed the same disregard for the British legal system by stalling the investigation through a faked illness. We ask anyone with information about suspected tax fraud to call the Tax Evasion Hotline on 0800 788 887.”

Upon sentencing, His Honour Judge Picton said:

“This was an exercise in tax evasion, it persisted for a decade, was breath taking and wholly deliberate, deeply dishonest and carefully thought through with one objective to evade tax.”

HMRC investigations revealed the couple used over 80 bank accounts to launder their business funds, including their three children’s bank accounts and accounts in the false name of ‘John Pope’, an alias used by Samuel Jones.

A confiscation timetable has been set down by the court to remove the proceeds of their crimes.

Notes

1. Samuel JONES (30.11.58), also known to use the alias ‘John Pope’, of Chestnut House, Downend Road, Puriton, Bridgwater, Somerset, TA6 4TW.

2. Lorraine JONES (07.02.65), also know to use the aliases ‘Lorraine Pope’ and ‘Lorraine Isaacs’, of Chestnut House, Downend Road, Puriton, Bridgwater, Somerset, TA6 4TW.

3. The couple traded under the business names ‘Diamond Stone Paving’, ‘Diamond Driveways’, ‘JP Paving’, ‘J Pope’ and ‘J Pope Tarmac Constructors’.

4. Both were charged on 03 March 2010 with one count of Cheating the Public Revenue of Income Tax and National Insurance, and jointly charged under the VAT Act 1994 of Failing to Charge VAT to their customers, and Failing to File VAT Returns to HMRC.

5. Mrs Jones pleaded guilty to the offences at Bristol Crown Court on 21 May 2012, the first day of the trial.

6. Mr Jones was found guilty of the offences by a jury at Bristol Crown Court on 30 May 2012

7. Samuel Jones was sentenced to 4 years for each offence to run concurrently at Bristol Crown Court today, 28 June 2012.

8. Lorraine Jones was sentenced to 3 years and 6 months at Bristol Crown Court today, 28 June 2012.

9. The tax arrears of £552,952.87 were calculated on business profits of £903,600.00 made between 06 April 1998 to 05 April 2008:

• Income Tax liability £276,076.63
• National Insurance liability £20,791.24
• VAT liability £256,085.00

10. They were arrested by HMRC investigators on 20 November 2008.

11. The couple were previously successfully prosecuted by North Somerset Trading Standards in 2009 for false representation and for their poor standard of work, where they were known to have targeted the elderly and / or vulnerable.

Online sellers have just one week to register for tax opportunity (HMRC)

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Online sellers have just one week to register for tax opportunity

06 June 2012 10:20
People trading on the internet who haven’t paid all the tax they owe have one week left to take part in an opportunity offered by HM Revenue & Customs (HMRC) to get their tax affairs in order on the best terms available.
Under the time-limited opportunity, known as the e-Markets Disclosure Facility, online marketplace traders who come forward between now and 14 June to register their intention to take part in the campaign can benefit from lower penalties than those who HMRC catches up with.

The campaign is aimed at people using online marketplaces to buy and sell goods as a trade or a business and who are not up to date with their taxes. People who sell only a few personal items, however, and who are not traders are unlikely to be liable to pay tax on what they sell, and are not being targeted by this campaign.

Those who are unsure whether their e-marketplace activity could be seen as trading can visit HMRC’s website (http://www.hmrc.gov.uk/campaigns/emarket.htm) and can watch a YouTube video for advice (http://www.youtube.com/watch?v=uptdjVD2LgI).

Marian Wilson, head of HMRC Campaigns, said:

“We want to make it easy for online marketplace traders to contact us and register their intention to take part in the campaign. If you owe tax and don’t get in contact, do not assume that HMRC will not catch up with you soon. It’s better to come to us before we come to you.”

Last month, HMRC wrote to more than 30,000 people trading on the internet to let them know about the e-Markets Disclosure Facility. Additional information, from a wide range of sources, on more than 100,000 people is currently being assessed. After the 14 June deadline, HMRC will begin contacting online traders who did not come forward if the department believes they owe tax. Penalties of up to 100 per cent of the tax owed, or even a criminal investigation, could follow.

People who make a full disclosure:
•    will be offered a simple and straightforward way to put their tax affairs right
•    may not be charged a penalty at all, with most receiving a penalty of no more than 10 per cent of the tax they owe.
More than £510 million has been raised by HMRC from voluntary disclosures during campaigns, and a further £125 million from follow-up activity. There have been more than 18,000 investigations, with a further 4,600 still ongoing.

Campaigns launched so far have targeted offshore investments, medical professionals, plumbers, VAT defaulters, coaches and tutors, and electricians.

Notes
To come forward under the e-Markets Disclosure Facility, online sellers must notify HMRC by 14 June. They then have until 14 September to give details of the tax owed and arrange for full payment, including any interest and penalty due.

To let HMRC know of the intention to make a voluntary disclosure, online sellers can:
•    Use the forms on HMRC’s website at: http://www.hmrc.gov.uk/campaigns/notify.htm

Further information on HMRC campaigns: http://www.hmrc.gov.uk/campaigns/news.htm

Court winds up another Sunday Solutions tax umbrella company

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09/03/2012 13:42

Insolvency Service

Court winds up another Sunday Solutions tax umbrella company

Reed Umbrella Ltd, which serviced a discredited tax umbrella scheme for the self-employed, has been wound up in the High Court in the public interest following an investigation by Company Investigations, part of The Insolvency Service.

The Court heard that Reed Umbrella Ltd had provided legal and invoicing services to the ‘Sunday Solutions Scheme’, a tax umbrella scheme that was later closed down by the Service’s Court action (see Note 2).
The services provided by Reed Umbrella Ltd comprised the checking of contracts between consultants in the scheme and their employers. Each time a consultant changed employer or the terms of employment, such as a change of hourly rate, the contract was checked and a charge levied by the company.
Reed Umbrella initially traded as Simpson Cooper and Associates, then as Sunday Solutions UK Ltd, expanding its activities to include invoicing services to consultants already in the tax scheme and to newly recruited consultants.
In the year to 30 April 2010 the company collected and processed some £21.4 million of earnings by consultants. Many of the 1500 or so consultants who used the service did not have their tax liabilities paid and remain liable for their unpaid tax.
Company Investigations Supervisor Chris Mayhew, who welcomed the ruling, reminded anyone considering using an umbrella tax scheme to ensure they used a reputable company:
He said:
“Reed Umbrella originally provided document verification services to the Sunday Solutions Scheme and from around February 2009 it also provided invoicing services to participants in the scheme.
The company’s turnover in the year to 30 April 2008 was just over half a £million but with the expansion into providing invoicing services the company then handled over £21 million but no annual or management accounts were prepared after those for the year to 30 April 2008.
Reed Umbrella’s provision of services to Sunday Solutions were essential to the continuance of the unscrupulous scheme which eventually failed with substantial losses to its participants. As set out in the Court’s judgement, the action taken means that Reed Umbrella’s affairs and its involvement in the scheme are properly examined and wound up in an orderly way”.

Notes
1. Reed Umbrella Ltd was incorporated on 2 April 2007. The company was originally known as Simpson, Cooper and Associates Limited, changing its name to Sunday Solutions UK Ltd on 8 September 2008 and then to Reed Umbrella Ltd on 20 February 2009. The registered office of the company was at Close Business Centre, 2nd Floor, Thomas Court, Thomas, Bristol, BS1 6JG from 2 June 2008 to 3 April 2009 and thereafter at The Conifers, Hambrook Road, Bristol, Avon, BS16 1QG. The sole recorded director throughout was Robert Paddock. The secretary from 23 May 2007 to 18 April 2008 was Victoria Louise Kerly.
2. The Sunday Solutions scheme was originally promoted and operated by Sunday Solutions Limited and Bradbury & Co Limited, both of which were ordered into liquidation in the public interest on 15 December 2010 on grounds that they had displayed a level of commercial probity that fell markedly short of acceptable standards – see news release “Umbrella tax companies taken out of service” issued on 21 December 2010.
3. On 14 November 2011 a further related company Reed Morgan Limited, that also provided invoicing services to the participants in the Sunday Solutions scheme, was ordered into insolvent liquidation on the petition of the Commissioners for HM Revenue and Customs in respect of unpaid National Insurance Contributions of £11,969.82. The sole recorded director and secretary of the company is Corran Vale Limited, a company registered in the British Virgin Islands.
4. The petition to wind up Reed Umbrella Ltd was presented in the High Court on 26 January 2012 under the provisions of section 124A of the Insolvency Act 1986.
The grounds for winding up Reed Umbrella Ltd were:
§ conduct falling below acceptable standards of commercial probity,
§ failure to submit accounts
§ failure to submit annual returns and
§ abandonment.
In ordering the company into liquidation Ms Registrar Barber said:
“From the evidence presented by the Secretary of State, and which the company has filed no evidence in response or any indication that it contests the petition, it is clear that the company participated in the Sunday Solutions Scheme. The other participants in the Scheme, Sunday Solutions Limited and Bradbury & Co Limited were wound up in the public interest in December 2010. The Sunday Solutions Scheme was marketed as an umbrella scheme by which self-employed consultants were invited to delegate responsibility for invoicing and collection of fees to Sunday, whilst Bradbury was to provide accountancy and taxation services. In reality this did not occur and Sunday Solutions and Bradbury, as mentioned, were wound up in the public interest. The grounds were that the companies marketed and used partnerships over which the consultant clients – and intended partners – lacked any control; the marketing of the scheme was misleading; the companies levied excessive and arbitrary fees for their services and that the companies failed to meet the clients’ tax liabilities or prepare and file accounts and returns for clients. The role of Reed in the scheme during the period of its trading between 2007 and April 2010 included the provision of legal services including advising clients on the employment contracts prepared for them as part of the scheme and invoicing services to consultants participating in the scheme. Reed therefore was very heavily involved in the scheme as a whole. Against this backdrop and on the evidence before me, which is unopposed, I am satisfied that each of the four grounds are made out, firstly that Reed facilitated the scheme providing payroll, invoicing, accountancy and taxation services to the consultants for which it received payment. The scheme has already been held to be contrary to the public interest as lacking commercial probity and causing its members substantial loss. Secondly, that Reed has failed to file accounts due to 31 January 2010 and 31 January 2011. Thirdly, that Reed has failed to file annual returns due on 30 April 2010 and 30 April 2011. Fourthly that Reed has ceased trading and appears to have been abandoned. Steps therefore need to be taken for the winding up of Reed’s affairs in an orderly fashion and the investigation of any claims that the scheme’s members may have against it. I am therefore satisfied that Reed should be wound up and I do so order.”

© Crown Copyright 2010

Court appoints provisional liquidator for landbanking company

06/03/2012 12:30

Insolvency Service

Court appoints provisional liquidator for landbanking company

Manor Rose Limited has been ordered into provisional liquidation by the High Court, following a petition by the Secretary of State for Business, Innovation and Skills (BIS) to close down it and a related company.

The petitions to wind up Manor Rose Limited, a land banking company, and its connected company MR Investment Club Limited followed confidential enquiries carried out by Company Investigations, part of The Insolvency Service.
Manor Rose Limited http://www.manor-rose.co.uk marketed land and other investment opportunities to the public including the sale of shares in MR Investment Club Limited.
The court has appointed the Official Receiver to act as provisional liquidator of the companies on the application of the Secretary of State for Business, Innovation and Skills. The role of the Official Receiver is to protect the assets and financial records of the companies pending determination of the petitions.
The provisional liquidator also has the power to investigate the affairs of the companies insofar as it is necessary to protect their assets including any third party or trust monies or assets in the possession of or under the control of the companies.
As the matter is before the court no further information will be made available until the petitions are determined. The petitions are listed for hearing on 30 May 2012.

Notes
1. Manor Rose Limited was incorporated on 22 May 2009 in the name of Vintage Partners Limited. The company changed its name to its present one on 8 June 2009. The registered office of the company is at 38 Hertford Street, London, W1J 7SG. The recorded directors of the company have been Mr Paul Moore (from 1 October 2010), Mr Thomas William David Carr (from 9 October 2009 to 25 January 2011), Foster Reeve & Co Limited (from 22 May 2009 to 17 August 2009), Mr Peter Martin Loughran (from 22 May 2009 to 9 June 2009) and Mr Richard James Pearce (from 9 June 2009 to 9 October 2009). The company has no recorded secretary.
2. MR Investment Club Limited was incorporated on 22 August 2011. The registered office of the company is at Suite 3 c/o Incorporate Online Ltd, 4 Town Quay Wharf, Barking, Essex, IG11 7BZ. The sole recorded director of the company is Mr Paul Moore (from 22 August 2011). The company has no recorded secretary.
3. The petitions to wind up the companies were presented in the High Court on 27 February 2012 under the provisions of section 124A of the Insolvency Act 1986.
4. The Official Receiver was appointed as provisional liquidator of the companies on 28 February 2012.
5. Company Investigations, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation & Skills (BIS).

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