An Oxfordshire landscaping boss, who ignored his director ban and left £300,000 in unpaid tax across two companies, has been banned from running companies for 12 years.
Neil Aldridge was initially banned for three and a half years in 2019 after his company, Neil Aldridge Landscapes, went into liquidation owing at least £82,650 to HM Revenue and Customs (HMRC).
Aldridge, 57, breached his disqualification by acting as the director of a ‘phoenix company’, Aldridge Landscaping Ltd, without permission from the court.
He then repeated the same misconduct, failing to pay taxes as they fell due, leaving HMRC owed a further £217,498 when that company was also wound up.
Phoenixing, or phoenixism, describes a situation where the same business or directors trade successively through a series of companies which liquidate or dissolve, leaving debts unpaid.
A textbook example of misconduct
Kevin Read, chief investigator at the Insolvency Service, said: “Neil Aldridge knew he was banned from running companies, but carried on anyway, repeating the exact behaviour that got him disqualified in the first place.
“This is a textbook example of abusive phoenixism where directors use companies to evade debts.
“The Insolvency Service is determined to root out this kind of misconduct and protect creditors, taxpayers and honest businesses from those who abuse the system.”
Richard Hopwood, head of insolvency at HMRC, added: “We are determined to allow honest businesses to thrive, which is why it’s crucial we work closely with the Insolvency Service and other partners to take action against anyone involved in abusive phoenixism that undermines the tax system.
“The majority pay the tax that is due, but we will pursue those who refuse to play by the rules.”
Ignoring restrictions
Aldridge was appointed sole director of Aldridge Landscaping Ltd when it was incorporated in June 2017.
However, the company began failing to pay its VAT and PAYE liabilities as they became due that year.
Aldridge should have stopped acting as a director of Aldridge Landscaping Ltd when his three-and-a-half-year ban came into effect following the liquidation of Neil Aldridge Landscapes.
Instead, he ignored the restrictions and continued running the company until July 2022, repeating the same misconduct that led to his original disqualification.
Throughout this period, the company made just five payments totalling £20,692 towards its VAT bill, despite owing £109,410 at liquidation.
The company owed a further £108,088 in PAYE, having only paid £24,972.
By the time HMRC petitioned for Aldridge Landscaping Ltd to be wound up in June 2024, the company owed £217,498 in unpaid VAT and PAYE.
The secretary of state for business and trade accepted a disqualification undertaking from Aldridge, and his ban started on 5 February. This prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
