Shopkeeper banned for failure to file accounts

Shopkeeper banned for failure to file accounts
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Peninsula Team, Peninsula Team

(Last updated )

A Swansea shop owner has been banned from acting as a director for six years after failing to file accounts and fund transfers

The Insolvency Service has given Asif Muhammad a six-year ban after he failed to ensure that Local Shop Limited maintained or preserved adequate accounting records.

When the company went into liquidation in December 2021, no accounting records were available for inspection by the liquidator.

As a result, it was not possible to determine why £108,069 net was transferred out of Local Shop’s bank account to an account in the name of ‘Mr Muhammad Asif’ between 21 December 2020 and 21 January 2022.

The liquidators were also unable to establish the reason for net payments totalling £112,385 made from Local Shop’s bank account between 21 December 2020 and 18 November 2021 and whether they were for the benefit of the company. There were also additional net cash withdrawals of £1,930 during the period between 21 December 2020 and 18 November 2021.

In addition, Muhammed did not settle tax bills for PAYE, national insurance contributions and VAT from the date of the last accounts filed at Companies House on 31 July 2020 until the business was liquidated on 9 December 2021.

The six-year ban came into effect on 9 January 2024.

For more information on misconduct, visit BrAInbox today for instant answers to questions like When a disciplinary warning has expired, do I have to physically remove it from the employee's personnel file?

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