Pier and hotels owner Abid Gulzar has lost an appeal against the taxman after he was asked to stump up cash for Pay As You Earn and National Insurance contributions in relation to his new businesses because of previous unpaid bills.
HMRC issued a notice of requirement to give security to Abid Gulzar in March 2017 – action taken when there are cases of serious non-compliance where HMRC consider PAYE and NIC is seriously at risk. However, this week Mr Gulzar said he would challenge the appeal ruling and added the balance of the monies were in dispute with HMRC.
The notices were given after it was revealed some of Mr Gulzar’s companies owed in the region of £400,000. Mr Gulzar appealed against the notices saying he had already repaid £215,000 and felt he was being unfairly treated. But in papers just released from a tribunal, a judge dismissed his appeal and said he was satisfied HMRC had acted reasonably.
The notices of requirement to give security for PAYE and NIC liabilities were issued to Boship Lions Farm Hotel Ltd, Mansion Lions Hotel Ltd and Albany Lions Hotel Ltd and Mr Gulzar, as the director and 100 per cent shareholder of all three companies.
The tribunal heard when the decision to issue the notices, Mr Gulzar, trading as Albany Lions Hotel, owed £47,626.49 PAYE and NIC and a VAT liability of £16,582.74, Mr Gulzar trading as Boship Lions Hotel owed £79,825.08 PAYE and NIC and Lions Hotel Ltd had become insolvent in Jaunary 2017 with PAYE and NIC debts of £260,013.05.
The tribunal also heard other businesses in the ownership of Mr Gulzar – Lions Cub Nursery, Lions Pier Ltd and Lions Group Shop – owed almost £200,000 in PAYE and VAT. Chatsworth Hotels Ltd went into liquidation in 2017 with a PAYE debt of £39,217.98
Mr Gulzar said, “In excess of £250,000 has already been paid and the balance of the monies is in dispute which HMRC is aware of.“