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Payroll records: keeping your ducks in a row!

You may have heard about the director of a payroll processing company who got into hot water back in September 2018.

Here’s a court case that illustrates the importance of getting your ducks in a row when it comes to payroll.

John Hanbury was appointed as director of Crownsbury Ltd. But within six months the company went into administration. The Insolvency Service found that he had failed to ensure the group maintained and delivered adequate payroll and accounting records.

What’s the big deal?

There may be some of you out there who are scratching their heads and wondering what the big deal is.

Well, let me explain. Investigators found receipts totalling £7,849 that they were unable to substantiate.

They also found a number of unexplained payments going out of the company account including a receipt of £520,000 on 15 April 2016 that went undetermined.

Also, the receipts totalling £7,849 came from a company of which Hanbury was also a director.

Disqualified for seven years

He was disqualified for seven years. He is :

  1. unable to act as a director of a company,
  2. be a recipient of company property, or
  3. take part, directly or indirectly, in the promotion, formation or management of a limited  liability partnership.

This story shows just how important it is to keep proper records and to always practice your business affairs with complete transparency.

Being organised and efficient is not everyone’s forte, and that’s why we at BrightPay have technology that eases the burden for you. Check it out HERE.

 

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