Spring House Group Limited (04189857): administration
- Status
- Administration ended
- Administration began
- 2019-06-27
- Administrators
- Lee Van Lockwood, Nicholas Edward Reed
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2001-03-29
- Location
- Toronto Street
- Industry
- 01629 Support activities for animal production (other than farm animal boarding and care) n.e.c.
Why it went into administration
- HMRC / tax arrears
- Brexit
From the administrators' statement
The Company was incorporated in 2001 and traded as a horse riding and languages school, operating from a centre in Harrogate. The Company also operated a hotel.
The business was profitable throughout its years of trade and even continued to generate profits despite the inevitable downturn caused by the uncertainty of Brexit, and the impact this had on international customers of the language centre; in particular However, the Company had been subject to a review from HM Revenue & Customs (‘HMRC’), which considered that tax and/or Vat may have been under-declared. The conclusion of the review was that demand for approximately £70k was made on the Company in respect of outstanding tax due. The Company's directors have advised that this had arisen as a result of confusion over the sales mix declared to HMRC and that had they been aware earlier, this demand would not have arisen and the debt could have been managed.
The Company did not have sufficient funds to pay the £70k demand as it fell due. The directors, therefore, contacted Begbies Traynor Group to assist in providing advice to the Company. It was noted following our review of the Company's financial position that creditor levels were minimal and the Company had made every effort to ensure that debts were settled as they fell due This is not always apparent in these types of processes and suggests that had it not been for the issue with HMRC, the Company could have continued to trade profitably The review did however highlight that the Company was cash flow insolvent and, if subjected to scrutiny, balance sheet insolvent as well as a result of this demand from HMRC.
Administrators' statement of proposals (2019-08-22) · Companies House register