A BUSINESSMAN from Northamptonshire has been forced to pay almost £60,000 to the inland revenue after denying the public purse thousands of pounds.
Clive Urwin, aged 63, who lives in Vicarage Lane, Denton was warned by HM Revenue and Customs (HMRC) after his previous business went into liquidation that, unless he put up a cash security of £59,800 on his new customer care business to safeguard against any losses, he could no longer supply taxable goods or services.
However he ignored the trading ban and carried on, leading to a court summons.
He has now been fined £1,600 and ordered to pay compensation of £59,800, to revenue and customs.
Adrian Farley, the assistant director of criminal investigation for HMRC, said: “Insolvent traders are a major cause of the UK’s tax gap.
“We will take every action to tackle non-compliance to ensure the correct tax is paid and not avoided.
“We will investigate those individuals who go into liquidation one day, owing thousands of pounds, only to set up successor, or ‘phoenix’, companies the following day.
“They resume trading but under a new name to avoid paying what’s due to public funds.”
Urwin, the director of Birmingham-based Tyburn Marketing Services Ltd, had been given a notice of requirement asking him to pay the cash security to allow trading to continue.
However, he ignored the notice and continued operating, doing about £642,000 of work and resulting in £93,000 of VAT being owed to HMRC.
It had followed the folding of his previous business, Parade Marketing Ltd at the same Birmingham premises, which went into liquidation owing VAT of £124,000 in 2010.
He admitted 10 offences in court – with a further 371 to be taken into account – of supplying goods and services without giving a security when required between September 2009 and April 2010, and not paying £13,000 of VAT.
An HMRC spokeswoman said: “It’s was a large amount of money that was being denied from the public purse. In these straightened times, this matters more than ever.”