Director banned for poor record keeping
A company director has been disqualified from being involved in the management of any company for eleven years. What went on and why should directors take notice of the circumstances?
The High Court issued a disqualification order lasting eleven years to the sole director of Magnetic Push Ltd. The company was purportedly operating as a payroll services company, and entered voluntary liquidation within a year of being formed. However, the liquidator found the director completely unco-operative when requesting the company’s statutory records. This was reported to the Insolvency Service, which investigated and found that the company was acting as an umbrella company in part of a tax avoidance scheme.
This is obviously an extreme case, but there are wider implications for company owners. It should serve as a reminder that companies are subject to strict conditions when it comes to the records that must be kept, both in respect of the company itself and its financial and accounting information. Failure to keep accounting records can lead to a £3,000 fine and/or disqualification from acting as a director. In short, good record keeping should be a priority for any company director. The information provided here is a good reference point for what you need to be keeping.
Related Topics
-
HMRC updates guidance for claiming new allowance
Qualifying expenditure on plant and machinery can qualify for a 40% first-year allowance from 1 January 2026. HMRC has now updated its guidance to help make claims. What do you need to do?
-
Get ready for Making Tax Digital for Income Tax
If you’re one of the (un)lucky individuals who need to join Making Tax Digital for Income Tax (MTD IT) from 6 April 2026, you probably know that this involves submitting regular, digital records to HMRC. But what do you need to do to prepare?
-
CT61



This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.