Sheffield payroll director banned after company went into liquidation with £2.5 million VAT bill
The company substantially under-declared the amount of tax it had to pay in 2020 and 2021
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Hubert Omukhulu failed to declare the correct amount of VAT his Remedy Payroll Solutions Ltd company was required to pay
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VAT returns submitted by the company in a 15-month period between June 2020 and September 2021 suggested it had little more than £250,000 to pay
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In reality, the company owed more than £2.5 million in tax
The boss of an umbrella company which failed to pay more than £2.5 million in VAT has been banned as a director.
Hubert Omukhulu, 36, failed to accurately declare the amount of VAT Remedy Payroll Solutions Ltd had to pay in 2020 and 2021.
The inaccurate returns Remedy Payroll Solutions submitted suggested the company had no VAT to pay in 2020 and just over a quarter of a million pounds in 2021.
However, this was an under-declaration of more than £2 million according to calculations from HM Revenue and Customs (HMRC).
Omukhulu, of Nethershire Lane, Sheffield, has now been disqualified as a company director for eight years.
Kevin Read, Chief Investigator at the Insolvency Service, said:
Hubert Omukhulu allowed his payroll supply company to substantially under-declare the amount of VAT it owed in 2020 and 2021.
More than £2 million in VAT was not paid by the company. This money should have gone towards funding vital public services such as the NHS, schools and our nation’s defence.
Omukhulu’s conduct falls well below the standards the Insolvency Service expects which is why he has been banned as a company director until 2033.
Debbie Porter, Assistant Director of Fraud Investigation Service at HMRC, said:
We are determined to create a level playing field that allows honest businesses to thrive which is why it’s crucial we work closely with the Insolvency Service and other partners to act against rogue directors.
The majority pay the tax that is due, but we will pursue those who refuse to play by the rules.
Remedy Payroll Solutions was established in May 2020 with Omukhulu as its sole director.
The company initially had its registered office as Omukhulu’s home address in Sheffield before switching it on several occasions between addresses in Romford and Hainault.
Remedy Payroll Solutions submitted three VAT returns in 2020 claiming it had no tax to pay in that year.
The company submitted another three returns in 2021, claiming it had a combined £264,276 to pay in VAT.
HMRC investigated Remedy Payroll Solutions’ bank accounts and contacted its customers. Through their investigations, they calculated that £2,584,044 was owed by the company in VAT.
Remedy Payroll Solutions went into liquidation in July 2022.
Omukhulu claimed there was third-party involvement in the running of Remedy Payroll Solutions but failed to provide any evidence of this when asked by the Insolvency Service.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Omukhulu and his ban started on Thursday 17 April.
The undertaking prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
Further information
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Hubert Omukhulu is of Nethershire Lane, Sheffield. His date of birth is 16 December 1988
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Remedy Payroll Solutions Ltd (company number 12469427)
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Individuals subject to a disqualification order or undertaking are bound by a range of restrictions