Stephen Paul Martin, 59, was the director of building and construction firm SP Martin Builders Limited based in Bury St Edmunds, Suffolk, from May 2005 until the firm’s liquidation in March 2015.

Mr Martin has since been banned from acting as a director for eight years after failing to attend court or respond to the secretary of state for business, energy and industrial strategy’s application for the disqualification order.

The order came about after Mr Martin failed to maintain or deliver the company’s accounting records, which meant it was not possible to establish that all money paid out by his firm was related to genuine company expenses.

It was also not possible to verify the company’s true level of sales income or reveal why there were bank payments totalling £72,420.

The Insolvency Service also found during its investigation that Mr Martin had caused the firm to fail to file the required annual accounts and returns with Companies House between 2010 and 2015.

In addition, the investigation discovered that Mr Martin had failed to submit the necessary returns and payments for taxes over the five-year period, which resulted in the firm owing £81,226 to HMRC in liquidation.

“Directors of limited companies have a clear, statutory obligation to make sure that they maintain full and accurate records,” said Robert Clarke, investigations group leader at the Insolvency Service. 

“Without these it is impossible to verify what has happened to company funds, account for its assets or establish whether directors have acted properly.”

Robert also issued a warning to other company directors who failed to keep records.

“Directors cannot cloak their actions through a lack of records, or seek to gain an unfair competitive advantage through non-payment of taxes, and the Insolvency Service will take robust action against those who fail to maintain the standards required.”