Scottish councillor banned as company director over £170,000 unpaid taxes
Shetland Isles Council convener owed HMRC when business went into liquidation
A Scottish council boss has been banned as a company director for three and a half years.
Andrea Manson, 67, convener at Shetland Islands Council, owed more than £170,000 in unpaid taxes when Mid Brae Inn Ltd went into liquidation.
Mid Brae Inn, which is situated in Brae on the Shetland mainland, failed to make any VAT payments to HMRC between April 2019 and January 2023, despite continuing to trade.
The pub went into liquidation in May 2023, owing £110,675 in VAT and surcharges, and a further £59,227 in unpaid PAYE and employer National Insurance contributions dating back to 2018/19.
Including smaller amounts in corporation tax, the company’s total debt to HMRC was at least £178,860.
Neil North, chief investigator at the Insolvency Service, said: “Andrea Manson holds a senior position in local government and was elected into office by residents of the Shetland Islands, taxpayers who will be required to pay council tax and other taxes.
“This is a position of responsibility and respect, yet she failed to ensure her company met its own tax obligations, leaving HMRC owed more than £170,000.
“Directors have a duty to ensure their companies pay the taxes they owe. This disqualification should serve as a warning that we will take action against those who fail to meet these basic responsibilities.”
The independent councillor’s ban means she now cannot be involved in the promotion, formation or management of a company without the permission of the court.
Ms Manson’s co-director, Catherine Davies, 64, has been disqualified for the same amount of time since November last year.
Between 2019 and 2023, only £6,000 was paid by Mid Brae Inn Ltd to HMRC, despite more than £800,000 being paid into the company’s bank account.
Shetland Islands Council has been approached for comment.
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