Husband and wife company directors banned for over £30m tax evasion

The Derby-based couple submitted inaccurate VAT, PAYE, and NIC returns from May 2017 to April 2020, under-declaring more than £33m owed to HMRC.

• EasternEye
• 31 July, 2024

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By: EasternEye

Raja Usman and his wife Khair Un Nisa, directors of Umbrella Care Ltd, have been banned from running companies after failing to pay over £30 million in taxes.

The Derby-based couple submitted inaccurate VAT, PAYE, and NIC returns from May 2017 to April 2020, under-declaring more than £33m owed to HM Revenue and Customs (HMRC).

Usman, 38, was disqualified for 14 and a half years and ordered to pay £5,399.10 in costs. Nisa, 41, agreed to an 11-year disqualification in September 2023.

Lawrence Zussman, deputy head of Company Investigations at the Insolvency Service, said, “Raja Usman and Khair Un Nisa deliberately under-declared the amount of tax Umbrella Care was expected to pay by tens of millions of pounds. This was money that should have been used to provide vital public services and investment in areas such as schools, hospitals, and roads.”

Umbrella Care was wound up in November 2020, owing over £35 million to HMRC. Investigations revealed £12 million in under-declared VAT and £21.6m in under-declared PAYE and NIC.

Insolvency practitioners from Azets Holdings Ltd, working with HMRC and Wedlake Bell LLP, have recovered around £5.2m from various bank accounts and sold 14 properties for £7.3m. Further recoveries are expected to bring the total to approximately £14m.

Louise Brittain, joint liquidator at Azets, said, “Azets has conducted extensive investigations and litigation in this case to recover wrongfully removed company funds, and this has led to a considerable return to creditors. We are pleased that these actions have enabled the Insolvency Service to obtain the disqualifications and undertakings that they have, and this case demonstrates the strength of private and public sector working.”

The disqualifications prevent Usman and Nisa from involvement in the promotion, formation, or management of a company without court permission until 2034 and 2039, respectively.