The story of one unfortunate former restaurant owner serves as a warning that insolvency can leave business owners open to further scrutiny of their business.
The recent case involving Azam Ail, former director of the Indian Restaurant Pabna Restaurant Ltd (Pabna) ended with 9-year ban from the promotion, formation or management of a company unless he has permission to do so from the court.
This penalty was imposed after an investigation into the individual’s business affairs found that sales figures has been concealed and supressed. This had resulted in the company paying less tax than was due to HMRC.
The director had taken the decision to enter voluntary liquidation when it became clear the business had not paid the correct amount of tax, however this didn’t help the business owner’s cause when it came to further investigation.
To avoid a similar fate, it goes without saying that business owners should avoid trying to conceal income from HMRC. Debts can accumulate over time to the point where it becomes impossible to pay back what is owed and worse this can result in further investigations which can prevent a business owner from running a business for many years.
If your business is threatened with insolvency and you are unsure of what to do next, speak to one of our insolvency advisors who may be able to help.