Payroll director banned after £2m tax underpayment

The boss of a payroll company has been disqualified from his role after the business underdeclared its taxes by more than £2m.

Hubert Omukhulu's company, Remedy Payroll Solutions Ltd, owed £2,584,044 between June 2020 and September 2021, but declared only a tenth of this amount.

Omukhulu, 36, of Nether Shire Lane in Sheffield, has now been disqualified as a company director for eight years.

Debbie Porter, HM Revenue and Customs' (HMRC) assistant director of fraud investigation, said: "We are determined to create a level playing field that allows honest businesses to thrive, which is why it's crucial [authorities] act against rogue directors."

Tax returns submitted by Remedy Payroll Solutions suggested it had no VAT to pay in 2020 and just over £260,000 in 2021.

HMRC investigated the company's accounts and contacted its customers to calculate the true amount of VAT owed.

Kevin Read, chief investigator at the insolvency service, said: "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."

The company was established in May 2020 with Omukhulu as its sole director and went into liquidation just over two years later.

Its registered office was initially his home address, before switching on several occasions between addresses in Romford and Ilford.

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 the disqualification with a ban starting on 17 April, preventing Omukhulu from promoting, forming or managing a company without court permission.

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