The Company traded as a Chinese takeaway restaurant in two locations in Portsmouth. One of the business premises was owned by the director personally and the other premises the company entered into a formal lease with a commercial landlord.
In both cases, this company was in occupation on an informal basis contributing to the rent and outgoings on an ad hoc basis when cash flow permitted.
During the preceding months, the director had been going through an acrimonious divorce. As part of the final settlement, the Court ordered that he transfer his entire interest in one of the takeaway restaurants.
Regrettably, the break-up of his marriage and subsequent divorce proceedings were so stressful that he struggled to cope and for extended periods he was not able to work.
In his absence, the takeaway was run by various temporary employees, although it was not until he was well enough to return to work, he discovered discrepancies in the takings and that his trust in these individuals had been misplaced.
The Company received a Notice of Inspection by HM Revenue & Customs following concerns that the Company had failed to register for VAT or set-up a PAYE scheme.
Previously unaware of this potential issue, but himself concerned that there may have been some problems in their accounting processes in his absence, the director set about collating all the information required for this enquiry.
However, having failed to provide this information within the timescale required, a legal request for documentation was received from HM Revenue & Customs.
By this stage, the Company was due to submit accounts and although his former wife had intended to instruct accountants in this regard, this was not done and unable to provide all the information and documentation requested by HM Revenue & Customs.
With no reserves in the Company to discharge any liabilities or penalties, trading ceased and AABRS were instructed to place the company into creditors’ voluntary liquidation.