A MOTHER and daughter from Staffordshire, former directors of the Olde Star Inn, public house and restaurant, in Cotton, Stoke-on-Trent have been fined £660 and ordered to pay compensation of £1,334 to HM Revenue and Customs (HMRC) for ignoring a trading ban.
Jane Pickles, who ran the pub, and her daughter Sarah Jane Pickles, who worked as the pubs chef, had been warned by HMRC that unless a cash security of £57,403 was given to safeguard against potential company tax losses, they could no longer supply taxable goods or services. This followed the folding of a previous public house business that went into liquidation owing nearly £11,000.
Adrian Farley, Assistant Director of Criminal Investigation for HMRC, said: "They were given every chance to work with HMRC to meet their tax liabilities but failed to take the opportunities provided to them.
"Insolvent traders are a major cause of the UK's tax gap. We will take every action to tackle non compliance to ensure the correct tax is paid and not avoided. We will investigate those individuals who go into liquidation one day, owing thousands of pounds, only to set up successor or 'phoenix' companies the following day. They resume trading but under a new name to avoid paying what's due to public funds."
A 'Notice of Requirement' was issued to Jane and Sarah Pickles by HMRC in October 2012 requiring them to pay the cash security to allow trading to continue.
A 'Notice of Requirement' to give security for the VAT outstanding warns the trader that if it is not paid they will face criminal prosecution if trading continues.
However, they ignored the notice and continued operating, selling goods worth £16,000 resulting in almost £3,000 of VAT being owed to HMRC.
Jane Pickles, aged 55, formerly of The Olde Star Inn, Star Bank Road, Cotton, was fined £330 and ordered to pay compensation of £667 to HMRC. She was charged and admitted to six offences under the Vat Act 1994 continuing to make taxable supplies without paying a security deposit.
Sarah Jane Pickles, aged 32, of Leys Terrace, Whiston, was fined £330 and ordered to pay compensation of £667 to HMRC. She was charged and admitted to six offences under the Vat Act 1994 continuing to make taxable supplies without paying a security deposit.