Gemma Collins Banned From Running The Company For Three Years
Gemma Collins was banned from her venture after failing to pay more than £70,000 in tax
An investigation report disclosed by the Insolvency Service, Collins she put her company Gemma Collins Boutique Limited into liquidation
HRMC passed out the order saying that Gemma will now be unable to act as director until 2023
Under the directorship of Gemma Collins, the company failed to pay tax worth £70,000 ($90 thousand). Now, she is banned from running the company for around three years after, HRMC passed out the order.
A team of investigators deployed by the Insolvency Service disclosed that the 39 years old reality TV star Collins' business, Gemma Collins Boutique Limited owed over $90 thousand of unpaid tax since 2017.
The probe further revealed that the fashion boutique in Essex had missed all VAT return deadlines.
The case report reads:
"Since at least 7 October 2013 until 11 July 2017, the date of liquidation, Ms. Collins caused Gemma Collins Boutique Limited to trade to the detriment of HMRC by failing to ensure it submitted returns and made payments as required for VAT so that as at liquidation, Boutique had an outstanding liability of at least £71,745.04 ($92 thousand) in respect of VAT."
Furthermore, Boutique's first return for 08/13, due for submission and payment by 7 October 2013 at the latest, was submitted on 16 March 2015 with a sum due of £5,692 ($7 thousand). No payment was made in respect of this return.
Added: Boutique submitted a further 13 VAT returns for the 11/13 to 11/16 periods totaling £55,784.89 ($71 thousand) against which only four payments were made totaling £5,906.37 ($7 thousand). In the absence of adequate payment, HMRC raised surcharges totaling £4,434.19 ($5 thousand)for these periods. No further payments were made.
Also, In the absence of returns, HMRC raised assessments for the 02/17 to 08/17 periods totaling £10,489.00 ($13.5 thousand) and applied surcharges of £1,250.85 ($1.5 thousand). Prior to the submission of the late returns, HMRC raised assessments totaling £4,899 ($6 thousand) for the VAT periods up to 02/15, against which one payment of£708 ($1 thousand) was made in November 2014.
Finally, At Liquidation Boutique had VAT liabilities totaling £71,745.04 ($92 thousand).
Moreover, the investigation disclosed the fact that around £280,000 ($60 thousand) went out of the company's bank account including £33,298.29($42 thousand) to Gemma, around £18,538.68 ($23 thousand) to connected companies and £16,086.47 ($20 thousand) to so-called 'unknown parties,' while the boutique was behind on its VAT returns.
Recently, in January 2020, Gemma resigned from her position of director from her subsidiary companies, Gemma Collins Limited and Gemma Collins Clothing Limited, just a month ahead of the ban.
According to the source, now her father, Alan Collins, will take over the finances and venture after her boutique went into liquidation.
According to Daily Mail, the aforementioned firms made a profit of around £55,699.
What Is The Net Worth Of Gemma Collins?
Gemma Collins is estimated to have a net worth of $4 million as of 2020.
She mainly gathers her fortune from her successful English TV personality and entrepreneur.