Charities reminded of the importance of fulfilling their tax obligations

Chief Executive Officer and a director of Broken Rainbow LGBT Domestic Violence Service, Jo Harvey-Barringer, has been banned for three and a half years from participating in the management of a company, after it became apparent that the charity had not been maintaining its PAYE payments to HMRC in respect of the charity’s PAYE debt.

Anthea Simpson, Chief Investigator with the Investigation and Enforcement Services, of the Insolvency Service reminded charities of the importance of fulfilling their tax obligations.

“This ban should serve as a warning to other directors, particularly to those operating in the charity sector, that Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes.

“Deliberate neglect of tax affairs whilst paying others is not a victimless action as it deprives the taxpayer of the funds needed to operate public services and if they put their own needs before them they could be investigated by the Insolvency Service and lose the privilege of limited liability trading.”

For more information please see the National Audit Office Report on the funding and governance of Broken Rainbow.