£1.9m paid to connected parties

Second director barred over HMRC non-compliance

A second company director has been disqualified after a paper and board supplier left HMRC with a six-figure shortfall despite paying more than £2m to other parties.

Mark John Saunders is a director of Daniel Paper & Packaging Ltd, alongside Heidi Annette Saunders who was barred in April.

The firm was based in Woodford, Cheshire.

He has received the same length of ban, three-and-a-half years, and for the same reasons: namely causing or allowing the company to trade to the detriment of HMRC.

Saunders failed to comply with statutory obligations to submit VAT returns for thirteen consecutive VAT quarters for the period ending November 2021, and failed to make the necessary payments to HMRC as and when they fell due.

Daniel Paper & Packaging went into administration at the end of March 2022 with unsecured creditors owed £256,143.

HMRC was left with a total shortfall of £156,101 including corporation tax, penalties and interest.

The Insolvency Service investigation also found that between 14 January 2019 and 29 March 2022 at least £2.4m was paid to various parties from the company's bank account, of which more than £1.9m was paid to connected companies.

Mark John Saunders’ month of birth is October 1962. His last known address was in Handforth, Wilmslow.

His disqualification came into effect on 30 May.

Mark and Heidi Saunders were also directors of Premier Sacks & Packaging Ltd, which also went into administration on 31 March 2022.