Midland labour supply boss banned for 11 years

Aaron Morby 7 years ago

The boss of Midlands construction labour supplier Worldwide Tradin Services (UK) has been banned from running a company until 2026.

Ravinder Singh Mandair, (45), was banned for causing losses to HMRC of £1.45m following an Insolvency Service investigation.

The investigation found that Mandair from Oldbury had caused WTS to engage in a scheme which represented to HMRC that workers it employed were subcontractors who were registered for VAT and eligible to be paid without deduction for income tax under the Construction Industry Scheme.

This allowed WTS to reclaim VAT to which it was not entitled while allowing the firm to pay its employees without making income tax and national insurance deductions.

WTS kept a record of payments made in ‘black books’, which revealed how the scam had operated, when seized by the provisional liquidator from its trading premises.

It has been estimated that losses to HMRC for VAT amounted to £469,000 as a consequence.

Furthermore, the investigation discredited all labour supplies ‘received’ by WTS, totalling in excess of £9m.

It was unfeasible for the suppliers to have provided the labour that WTS had claimed. The VAT claimed by WTS on these supplies was £1.45m, including the £469,000 from the black books transactions.

The income tax liability owed to HMRC is believed to be considerable but has not been quantified by HMRC.

WTS also failed to keep proper records, which meant that the reasons for cash withdrawals of £2.9m made from the firm’s bank account, could not be explained to the liquidator.

Ken Beasley, Official Receiver of the Public Interest Unit, said: “This was a sophisticated and lucrative attack on the public purse which caused considerable losses to HM Revenue and Customs.

“Investigations showed evidence of collusion between WTS, its suppliers and accountants. Mandair’s lengthy disqualification reflects the severity of the misconduct perpetrated.”

Latest news

Tide gets green light for UK’s tallest modular tower

Volumetric specialist to build 48-storey student skyscraper at Canary Wharf
2 days ago

TopHat cuts losses and aims for profit in three years

Modular specialist investing for future as latest results show £19.4m loss
21 hours ago

Story Contracting names next chief executive

Andy Joy to be promoted to CEO as Jason Butterwork becomes vice chairman
20 hours ago

Stalled £100m North London build-to-rent tower to start

Essential Living commits to start Swiss Cottage scheme six years after planning OK'd
1 day ago

Bidding starts for Pagabo £1bn medium works deal

Extra small project lot added in framework renewal
21 hours ago

Vital funding deal for £50m A38 Midlands upgrade

Work could start early next year on A38 BREP now out to tender
21 hours ago

Graham wins £16m National Railway Museum job

Firm seals pre-construction deal as new museum Central Hall gets planning green light
21 hours ago

Demolition starts on half-built £48m Taylor Wimpey flats

Furious local residents blast house builder over "unbearable" noise
4 days ago

Civils contractor fined £600k after boy dies in drainage pipe

Workers find seven-year-old who suffocated on housing site
4 days ago

Plan for trio of towers at old Yorkshire Post site

Galliford Try advises on construction plan for Leeds student and build to rent towers
4 days ago

Insolvency to rival inflation as project cost threat

Inflationary pressures likely to peak this year before easing in 2023, but supply chain stress is growing.
4 days ago

B+K starts £300m Sheffield West Bar scheme

Funding deal triggers start on major mixed-use scheme
4 days ago

Willmott Dixon bags £44m Passivhaus leisure centre

Private builder prepares to start Staines-upon-Thames complex
4 days ago

Go-ahead for £160m Cambridge mixed-use scheme

Devonshire Gardens will consist of 70 private rental flats and 120,000 sq ft of offices
4 days ago

Construction buyers report first drop in output for 18 months

Civil engineering worst performing sector
5 days ago

Construction and infra margins hit 3.2% at Morgan Sindall

Contractor picking deals carefully as inflation continues to bite
5 days ago

Morrisroe Group revenue tops £200m

Pre-tax profit halves to £2.7m as cost inflation bites
5 days ago

Kier to start new £400m ‘smart’ prison this autumn

At least 50 ex-offenders will help build new HMP Full Sutton
5 days ago

Former P&R Morson staff to launch legal claim

Former staff of failed Midlands M&E specialist consult with lawyers following administration
5 days ago

Eight firms win big north west MMC housing deal

JV North consortium plans to build 4,000 homes by 2026
5 days ago

Balfour to replace Ringway Jacobs on £176m Bucks highways deal

Balfour to start new eight-year maintenance contract in 2023
5 days ago

O’Keefe suppliers owed £13m despite Byrne rescue

Unsecured creditors to get less than 2p in the pound for their debts
7 days ago

Taylor Wimpey staff to get £1,000 towards fuel bills

All staff earning below £70,000 will receive a one-off payment
6 days ago

Equans bags Birmingham 300 council homes retrofit pilot

Council homes retrofit trial will test way for ambitious 60,000 homes decarbonisation plan
6 days ago

Van Elle returns to profit after £125m record revenue

Piling contractor restores dividend after work rebound delivers £3.6m profit
6 days ago

Race for places on £2bn housing decarbonising deal

South west central procurement body starts race for places
6 days ago

Kier signs off £36m Liverpool school job

Work to start on new Deyes High School in Maghull
6 days ago

WSP buys property and infra businesses from Capita

Consultant pays £60m for GL Hearn and Capita Real Estate and Infrastructure
7 days ago

Leeds unitised facade contractor crashes

Jobs axed as Glasshus Facades falls into administration
7 days ago

Morgan Sindall wins £61m Abergavenny super school job

Existing King Henry VIII High School will be replaced by a 1,900 place all-through school
7 days ago

Contractor services