FMJ (Scaffolding) Limited (05198897): administration
- Status
- Administration ended
- Administration began
- 2014-08-28
- Incorporated
- 2004-08-06
- Location
- Ilford
- Industry
- 43991 Scaffold erection
Why it went into administration
- HMRC / tax arrears
From the administrators' statement
The company traded as a scaffolding company and were based near Ongar in Essex The company was successful in obtaining contracts for erecting scaffolding for both new build and refurbishment works In the years ended 31 March 2012 and 2013 turnover exceeded £1 2m After tax profits for these years were £67,701 and £72,555 respectively
Problems arose following a routine inspection by HMRC in relation to the company’s VAT During this inspection HMRC noted that VAT had not been charged on some contracts These contracts were all scaffolding contracts on new build projects The company had been advised by their client that VAT was not applicable as the contract related to new build properties HMRC took a different view and believed VAT should have been charged as the new burld VAT exemption did not apply to the scaffolding as tt was only a temporary structure and not permanent This led to an assessment for unpaid VAT being raised, which together with penalties was in excess of £100,000
Attempts were made to reconcile the HMRC claim with the company records but to no avail As the company did not have the immediate funds to pay the assessment, discussions took place concerning a time to pay arrangement Unfortunately during these discussions no agreement could be reached
Administrators' statement of proposals (2014-10-10) · Companies House register