An investigation from the Insolvency Service revealed Timothy Lynch had also failed to provide evidence of financial deals and exchanges within the business. Turnover for the business was recorded as £36,000, yet £254,000 passed through its bank account, with £83,000 of that sum unacknowledged. No PAYE had been paid between 2010 to 2012 nor had VAT.
Furthermore, Lynch’s wife had been transferred £100,000 to her account and then sold the assets for £85,000, which again could not be accounted for by Lynch.
TJ Recovery was placed into liquidation in April 2012 and owed over £109,000 to creditors.
This is a warning to all directors to ensure accounts are kept up-to-date and filed accordingly. Failure to do so could not only put the company in jeopardy but could put the director at risk of being personally liable for all debt. For more information, read our guide on directors’ disqualification: www.companyrescue.co.uk/directors-guides-insolvency/directors-disqualification