A REDDITCH man and wife, directors of Machermore Castle Care Home Limited (‘Machermore’), have been disqualified from being company directors for total of seven years for failing to provide for taxes due following an investigation by the Insolvency Service.

The investigation found Malcolm and Esther Herbert allowed Machermore to trade while failing to pay full Pay As You Earn (PAYE) and National Insurance Contributions (NIC). The company traded as a care home from premises in South West Scotland but was registered in England.

Mr Herbert, aged 58, and his wife Esther, aged 52, each gave undertakings to the Secretary of State for Business Innovation and Skills (BIS) not to manage, control or act in the promotion of limited companies for a period of three-and-a-half years with effect from November 7. 

During the investigation, Mr and Mrs Herbert admitted that although the company’s turnover exceeded £1.6 million between June 1, 2005 and February 28, 2010, only £27,933 was paid to Her Majesty’s Revenue and Customs (HMRC) during this period.

As a result of the couple’s failure to provide for or pay PAYE or NIC in respect of employees wages, HMRC was owed £179,970 at August 18, 2010, the date the company went into voluntary liquidation.

Clive Tranter,  head of company investigations North East and Edinburgh a part of The Insolvency Service said: “The undertakings signed by Mr and Mrs Herbert send a clear message that there are certain responsibilities that come with being a company director and failure to perform those duties have consequences.

“The Insolvency Service has strong enforcement powers and we won’t hesitate to use them to remove from the business environment directors who fail to properly carry out their responsibilities.    

“Mr and Mrs Herbert failed to attend to the company’s tax affairs, causing the company to trade to the detriment of HMRC. In doing so, the conduct of both directors fell far below that expected of directors of a limited company.”