The director of a construction firm has been disqualified for seven years after failing to pay the tax he owed.

In 2015 and 2016, Her Majesty’s Revenue and Customs made unannounced visits to Martin Baker, of CJM Tiling in Cradley Heath.

It found that the company had under-declared its VAT liabilities as it did not disclose all its sales, and that some sales income was being deposited into a different bank account. CJM Tiling was fined additional VAT liabilities of £205,262, as well as civil penalties of £90,146.

The company entered liquidation last year, owing £469,673 to creditors, including at least £344,221 for VAT liabilities. The Insolvency Service, which investigates business misconduct, then carried out its own investigation.

It found that Barker had failed to ensure the company declared its true VAT liabilities on returns submitted to HMRC, and that a second company bank account was not disclosed, resulting in under-declarations of tax due.

Barker admitted to the accusations in May, and was banned from promoting, managing, or being a director of any limited company for seven years.

Jane Knight, Deputy Head of Insolvency Investigations for the Insolvency Service, said: “Under-declaration of the VAT due by a company deprives the exchequer of the monies needed to provide public services.

“In co-operation with HMRC, the Insolvency Service will not hesitate to investigate such misconduct with disqualification as a director the likely outcome.”