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Taxi boss disqualified for eight years 16 October 2013

The director of a Liverpool taxi firm has been disqualified from acting as a company director for eight years for failing to pay tax or keep proper accounting records.

Lee Battle, sole director of Yorkspeed Ltd, trading as City Kabs, was disqualified by Liverpool County Court, following an investigation by The Insolvency Service.

Robert Clarke, head of insolvent investigations north, at The Insolvency Service, said: “Directors who operate cash-based businesses have to maintain sufficient records to explain where the money has gone, and following insolvency make sure that such records are delivered up for scrutiny by the relevant bodies.

“By failing to do this, HM Revenue & Customs cannot be sure that all funds received by the company were used for legitimate purposes.

“The substantial period of this disqualification reflects the fact that when a company fails to keep adequate financial records it is simply not possible to determine whether there has been other, more serious, impropriety in relation to the management of its affairs.”

The investigation found accounting records for the company were insufficient to explain more than £700,000 cash withdrawals, over £40,000 of bank transfers and more than £13,500 of cheques, between August 2009 and March 2011.

The company failed to pay sufficient money to HMRC in respect of VAT and PAYE/NIC in the last two years of trading, which resulted in a debt of more than £225,000.

Battle also failed to explain why the company made lump sum payments of over £40,000 each to both himself and a family member.

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