Two directors of a liquidated finance recruitment specialist have been disqualified from acting as directors for five years.

A statement yesterday from the Insolvency Service reveals Jason MacDonald and Scott McDonnell, directors of finance staffing specialist Longbridge PWM, have been disqualified for withdrawing funds from the company to pay themselves and their personal tax liabilities, while the firm still owed HM Revenue & Customs more than £200k. 

Their disqualifications are effective from 18 August.

An Insolvency Service investigation found that before 1 January 2013, MacDonald and McDonnell received a total of £173k remuneration as dividends in the year to 31 March 2011, and £311k in 2012.

In December 2012, the directors were found to have amended their remuneration to a salary, subject to Pay As You Earn tax/National Insurance Contributions (PAYE/NIC). Longbridge filed a corporation tax return for the year ending 31 March 2012, due for payment on 1 January 2013, showing £98,749 owed.

Between January 2013 and June 2013 Longbridge made £212,815 in payments to MacDonald and McDonnell from the company’s bank account, including using £40,352 to pay personal tax liabilities owed to HMRC.

Due to the directors amending their remuneration, PAYE/NIC became due on the money they took from the company, resulting in HMRC raising a claim for £160,632.

Longbridge did not make any payments in relation to PAYE/NIC. Payments totalling £13k were made towards corporation tax owed.

At liquidation, the company owed HMRC at least £249,382, with no payments being made in relation towards PAYE debts.

The company began trading in 2009, with MacDonald and McDonnell as its only directors, and traded profitably up until late 2012 and early 2013 when it began to experience financial difficulty. Longbridge PWM was liquidated in 2013. 

A spokesperson for Staffing 360 Solutions firm Longbridge 360 told Recruiter it has no connection with Longbridge PWM.

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