Tag: Insolvency Service

The press release issued by the Insolvency Service on 6 June 2025.

UK Service Plan Ltd pressured elderly people – some of whom had Alzheimer’s and dementia – into service agreements to protect household appliances.

UK Service Plan Ltd sold monthly and annual plans which they said would provide service cover for household appliances.

The company had a pattern of behaviour which involved targeting the elderly and vulnerable and creating direct debits without permission.

The company was subject to a successful winding up order at the High Court in London on 19 May 2025, and its director was disqualified for eight years.

A company which used high pressure sales tactics to sell service plans for household appliances has been shut down after an Insolvency Service investigation found it targeted the elderly and vulnerable.

UK Service Plan Ltd, registered at Princess Street in Manchester and formerly Trafalgar Place, Brighton, offered protection plans for white goods to cover the cost of callouts, replacement parts and labour.

The company charged around £29 a month for a service plan, and some people were persuaded to take on lengthy agreements of up to three and five years.

Additionally, the company pressured people – some via cold calls – into buying plans by offering a discount which they falsely claimed was only applicable if they pay on the day.

The Insolvency Service looked at 14 complaints which had been received from UK Service Plan Ltd customers, all of whom were over the age of 71.

Seven of the complainants were described as being vulnerable, with variable memory recall and conditions including Alzheimer’s or dementia.

Three were cold called despite being registered with the Telephone Preference Service.

Six had direct debits set up apparently without their permission and three were told they were existing customers when they were not.

Insolvency Service Chief Investigator Mark George said:

UK Service Plan Ltd targeted and pressured some of the most vulnerable people in our society.

They were persuaded into buying a service agreement, which it appears many did not want or need.

Being able to shut this company down is a vital step toward protecting the public from becoming victims of their bad business practices.

The company was not represented at the hearing and did not defend the petition, with the company’s director – 41-year-old Mohamed Anoir Dhimi, of Manchester – giving an undertaking to the court not to be involved in the promotion, formation or management of any company whose business is in the same or a similar field for a period of eight years.

Dhimi did not fully co-operate with the investigation and provided limited information to the Insolvency Service.

As evidence of poor trading practice, between August 2021 and July 2022, it was found the company had paid more than £200,000 in refunds to 740 people.

In 2022, the company claimed to have a turnover of more than two million pounds.

But the recorded cash in the filed accounts did not match the balance in the known bank account at the relevant date.

In addition, the company failed to maintain accurate records and accounts the company filed at Companies House contained potentially false information.

UK Service Plan Ltd, incorporated in 2021, was last registered at an address on Princess Street in Manchester. It claimed to have 10 employees, but no actual trading address has been found.

The company had previously been registered in London and Brighton.

The Official Receiver has been appointed as liquidator of UK Service Plan Ltd.

The Insolvency Service worked in collaboration with Trading Standards on the investigation.

• Mohamed Anoir Dhimi: Date of Birth, October 1983. Address: Princess Street, Manchester.

The press release issued by the Insolvency Service on 5 June 2025.

Darts professional banned after company failed to pay hundreds of thousands of pounds in tax.

• Former world darts champion Rob Cross has been disqualified as a director after his company failed to pay more than £450,000 in tax
• The Insolvency Service also found Cross withdrew more than £300,000 from Rob Cross Darts Limited between March 2020 and November 2023 that should have gone to creditors
• Cross has now been banned as a company director until June 2030 and entered into an Individual Voluntary Arrangement (IVA) last year in a bid to pay off some of the money he owes

Former world darts champion Rob Cross has been banned as a director for five years after his company failed to pay more than £450,000 in tax.

Cross, known for winning the PDC World Darts Championship in 2018 and five World Series of Darts titles, was the director of Rob Cross Darts Limited, which was set up for the 34-year-old to receive his earnings and prize money.

However, between March 2020 and November 2023, Cross removed more than £300,000 in company money which should have been paid to creditors, including to HM Revenue and Customs (HMRC).

He had also taken out more than £400,000 from Rob Cross Darts Limited in the form of a director’s loan account by the time the company went into liquidation.

In an attempt to repay part of his debts, Cross has entered into an Individual Voluntary Arrangement (IVA), a legally binding agreement where he has committed to making regular payments to an insolvency practitioner. The monthly contributions Cross makes to the IVA will vary depending on the income he receives through his performances at darts tournaments during this year and future years.

Kevin Read, Chief Investigator at the Insolvency Service, said:

When directors fail to pay the correct amount of tax, it directly impacts the government’s ability to fund vital public services such as the NHS, schools, transport infrastructure, and our national defence.

Rob Cross’s company owed more than £400,000 in corporation tax alone when it went into liquidation. For more than three years, he withdrew funds from the company which should have gone to HMRC and other creditors.

This case demonstrates that we will pursue action against directors who deprive the public purse of much-needed funds. The rules apply equally to everyone in business, and we expect all company directors to comply with their legal responsibilities.

Enforcing these rules consistently is crucial in maintaining a level playing field and preventing companies from gaining an unfair competitive advantage over compliant businesses that properly fulfil their tax obligations.

Rob Cross Darts Limited was formed in May 2017, with Cross appointed as director on the same day.

Insolvency Service investigations found that the company received just more than £1 million from Cross’s earnings between the start of March 2020 and the date of liquidation in November 2023.

A total of £169,500 in sponsorships and £261,901 from his management company was also paid in to the company.

However, in the same period, Cross withdrew funds of at least £306,403 from the company which he acknowledged was “to the risk and ultimate detriment of HMRC”.

A further £665,419 was paid into the personal account of a connected party.

By the time the company went into liquidation, it owed £403,896 in corporation tax, £49,071 in VAT, and £12,436 in PAYE and National Insurance contributions.

The company had only paid £41,936 to HMRC between March 2020 and November 2023.

Cross’s director’s loan account was also overdrawn by £423,608 when the company went into liquidation with liabilities of £579,805.

The Secretary of State for Business and Trade accepted a disqualification undertaking from Cross, and his ban started on Thursday 5 June.

It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

• Rob Cross’s correspondence address is Level Street, Brierley Hill, West Midlands. His date of birth is 21 September 1990

The press release issued by the Insolvency Service on 29 May 2025.

New protocol is the result of the agency working with organisations across the sector to improve support for people considering an IVA.

• The changes to the IVA protocol bring further clarity and certainty for both consumers and creditors.
• Research published in October 2024, showed concerning evidence of poor practice by some providers.
• The revised protocol comes into effect from 1 June 2025 and is the product of the agency working alongside regulators, creditors, IVA providers and charities.

The Insolvency Service has published a revised Individual Voluntary Arrangement (IVA) protocol to improve the service currently offered to people in debt and safeguard them from poor practice.

IVAs are a legally binding agreement between a person who is insolvent and their creditors.

The new protocol includes an easy-to-read ‘key facts’ document which will be given to people in debt before they sign up to an IVA. The protocol also gives greater clarity to Insolvency Practitioners about their responsibilities when giving advice about IVAs.

It is the result of a collaboration between the Insolvency Service, regulators, the trade association R3, creditors, providers and charities following 2024 research which found poor practice among some IVA providers.

Claire Hardgrave, the Head of Insolvency Practitioner Regulation for the Insolvency Service said:

It is vital that people with debt problems are always given quality advice.

At the same time, Insolvency Practitioners need access to clear guidance in order to provide the best service possible.

Since the publication of our report, we have been working with regulators and have met with Insolvency Practitioners to discuss our plans.

This protocol provides much-needed safeguards and transparency for all concerned, ensuring there are fewer grey areas for the practice, and that people in debt are supported from the very start.

Marcial Boo, Chief Executive of the Insolvency Practitioners Association, added:

It is vital that Insolvency Practitioners meet high standards when supporting people in financial distress.

The revised IVA Protocol marks a significant improvement in the framework for the fair, efficient administration of consumer IVAs, including changes that the IPA, as the largest regulator for the sector across the UK, has long been advocating for.

We will continue to work with the Insolvency Service and others to ensure that the new protocol is applied in practice to bring benefit to debtors and creditors alike.

In 2024, the Insolvency Service published research into the provision of IVAs, looking at 310 which had been both registered and terminated between 2021 and 2023, finding that 60 per cent showed evidence of poor practice in the early stages.

The new ‘key facts’ document, will be given to consumers before they agree an IVA proposal and provides greater clarity on what to expect. It covers key areas, including implications for homeowners, fees charged by IVA providers, how monthly repayments are calculated and individual credit scores.

Some of the main changes to the protocol include:

• Clearer guidance for when an IVA is not suitable, for example, if a consumer qualifies for a Debt Relief Order.
• The consumer’s family home will no longer form part of their IVA if the providers and creditors follow the protocol.
• Where an IVA is terminated, a requirement that the supervisor should signpost the consumer to free, regulated debt advice.

The revised protocol is the product of the IVA standing committee (IVASC) of which the Insolvency Service is a member alongside the Recognised Professional Bodies (RPBs).

It involved all parties working together to agree a product which was easier to understand and provides greater clarity and certainty for consumers, creditors and Insolvency Practitioners.

Across England and Wales, a total of 64,050 IVAs were registered in 2024.

IVAs are administered by licensed Insolvency Practitioners, usually last for between five and six years, to pay off debts affordably monthly contributions

Anyone in problem debt should seek free, regulated debt advice and ask about the breathing space service while they explore possible solutions to suit their circumstances.

The press release issued by the Insolvency Service on 28 May 2025.

Bounce Back Loan fraudster also produced false invoice to liquidator.

• Shohid Ahmed applied for three Bounce Back Loans using his wife’s name, receiving £100,000 his Indian restaurant was not entitled to
• An invoice claiming to show £15,000 of the loan was spent on refurbishing the restaurant was revealed to be false during Insolvency Service investigations
• Ahmed also filed false documents with Companies House to suggest an innocent member of the public had taken over his business

A Bradford fraudster who secured £100,000 in Covid loan funds he was not entitled to and claimed an innocent member of the public was the director of his company has been jailed.

Shohid Ahmed used his wife’s name to apply for three maximum-value Bounce Back Loans on behalf of Red Square Restaurants Limited, an Indian restaurant on Huddersfield Road in Mirfield.

The 40-year-old received £100,000 of the £150,000 he fraudulently applied for in May and June 2020, with one of the applications refused.

Ahmed then used the personal details of a woman who rented a house from his father without her knowledge to create the illusion that she was the director of the company and had taken over the business.

He also produced invoices claiming to show the legitimate use of the Bounce Back Loans, one of which Insolvency Service investigators found to be fabricated.

Ahmed, of Bardsey Crescent, Bradford, pleaded guilty to offences under the Fraud Act 2006, Companies Act 2006 and Insolvency Act 1986 earlier this year.

He was sentenced to two years in prison at Bradford Crown Court on Tuesday 27 May.

Ahmed has repaid £5,000 of the Bounce Back Loans he illegally secured. The Insolvency Service is seeking to recover the remaining fraudulently obtained funds under the Proceeds of Crime Act 2002.

David Snasdell, Chief Investigator at the Insolvency Service, said:

Shohid Ahmed’s actions were highly deceptive and involved a range of serious offending.

He not only obtained two Bounce Back Loans for the restaurant he earlier had said was no longer trading, but implicated a totally innocent member of the public by creating the false impression that she was now the director of the company.

The Insolvency Service will not hesitate to prosecute Covid fraudsters such as Ahmed who have stolen from the public purse and caused harm to others.

Red Square Restaurants, which traded as Ruby’s Lounge, was incorporated in May 2018, with Ahmed’s wife as the sole director.

Ahmed himself was only officially director of the company for one day, being appointed and then resigning on 10 February 2020.

Despite not being the named director of the company, Ahmed made three Bounce Back Loan applications for Red Square Restaurants in the name of his wife as she had a better credit history than him.

Ahmed also claimed that the company was trading at the beginning of March 2020, to meet the requirements of the scheme.

That claim was contradicted by an application signed by Ahmed to strike the company off the Companies House register in early April 2020.

In the strike-off application, Ahmed said that the company had not traded in the previous three months.

Money from the Bounce Back Loans was also not used for the economic benefit of the business, as it should have been under the scheme.

Ahmed claimed that an invoice of £15,000 showed that money was spent on an interior redesign of his restaurant using a firm based in Stockton-on-Tees.

However, investigators found that the address for the design company Ahmed claimed to have used was actually a cafe which had been trading for 37 years.

Neither the cafe which occupied the unit or the landlord who manages the building had ever heard of the firm of interior designers.

A liquidator was appointed to wind-up Red Square Restaurants in July 2020.

Shortly before this, Ahmed filed false documents with Companies House claiming that a new director had been appointed on New Year’s Day in 2020.

Insolvency Service investigators spoke to the listed director who confirmed that she had no association whatsoever with Red Square Restaurants and had simply rented a house from Ahmed’s father.

However, Ahmed falsely claimed that she was the manager of the business who ran it day-to-day and had the power to recruit and dismiss members of staff.

Ahmed also falsely claimed that she had taken out both Bounce Back Loans and had access to the bank accounts where the money was deposited.

He added that he was a waiter and drew a salary of only £12,000.

Ahmed was disqualified as a company director for 11 years in December 2021 for his misconduct at Red Square Restaurants.

A restaurant under a different name now operates from the same address that Red Square Restaurants traded from. Shohid Ahmed is not a director of this company.

Further information

• Shohid Ahmed is of Bardsey Crescent, Bradford. His date of birth is 23 January 1985

The press release issued by the Insolvency Service on 28 May 2025.

The company continued to take deposits and full payments when it was insolvent.

• Frederick and Claire Reeves hired people who would burst into song at social events such as weddings
• The husband-and-wife allowed their company, Solfan1 Limited, to trade when they knew it was in serious financial trouble and on the verge of liquidation
• Couples continued to pay deposits or payments in full when Frederick and Claire Reeves knew there was no reasonable expectation the company could provide the services it offered

A husband-and-wife team who ran a business which provided surprise singing waiters at weddings have been banned as directors after taking payments from customers when the company was insolvent.

Frederick Reeves, 49, also known as Jamie Reeves, and his wife Claire Reeves, 41, ran Solfan1 Limited, which traded as The Best Singing Waiters.

The company provided performers who would blend in at weddings by pretending to be waiters before bursting into song at an agreed time.

However, the couple continued to take deposits, or payments in full, from 43 customers across the UK when they knew their company was unable to pay the debts it owed.

The couple, of Dickens Place, Wigan, have now been banned as company directors for eight years.

Solfan1 went into liquidation with liabilities of more than £700,000 and assets of just over £168,000.

Rob Clarke, Chief Investigator at the Insolvency Service, said:

Couples were left heartbroken after finding out the singing waiters they had paid to perform at their weddings would not show up.

Several of the customers who lost out financially were even offered discounts by the company to make their payment in full at the time of the booking.

The serious misconduct that both Frederick and Claire Reeves displayed falls short of the standards we expect of company directors which is why they have both been disqualified until May 2033.

Solfan1 was incorporated in November 2015. Claire Reeves was appointed as director in April 2018.

Frederick Reeves was never officially listed as director of the company but did not dispute that he acted in the capacity of a director when accepting his disqualification following Insolvency Service investigations.

The company was in financial difficulties in early 2024, having been served a winding-up petition from HM Revenue and Customs for tax debts of more than £200,000 at the start of February.

Following discussions with a private insolvency practitioner, the couple agreed on 28 March that Solfan1 should be placed into liquidation.

However, from then until the company went into liquidation on 1 May 2024, they continued to take deposits and full payments from new customers.

Analysis by investigators revealed that an estimated 43 customers made payments totalling £43,590 to the company during that period.

The Secretary of State for Business and Trade accepted disqualification undertakings from Frederick and Claire Reeves, and their bans both started on Wednesday 28 May.

The undertakings prevent them from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

• Frederick Reeves, also known as Jamie Reeves, is of Dickens Place, Wigan. His date of birth is 29 August 1975
• Claire Reeves is of the same address. Her date of birth is 12 October 1983

The press release issued by the Insolvency Service on 23 May 2025.

The company owed hundreds of thousands of pounds to creditors at the time.

• Mother and daughter Hazel Lamont and Nicola Murray decided to wind-up their Scotparts UK Ltd. company in 2023 as it was insolvent
• However, Lamont paid her daughter almost £200,000 in company money in the days following their decision to cease trading
• More than £300,000 had been paid into Scotparts’ bank account in the days before their decision to shut the company down

A Scottish mother paid nearly £200,000 to her daughter using funds due to a supplier just days after they decided their company was insolvent and would cease trading.

Hazel Lamont, 74, and her daughter Nicola Murray, 54, were directors of Scotparts UK Ltd., which was described on Companies House as being involved in the sale of machinery, industrial equipment, ships and aircraft.

The company, which had been trading since March 2006, was in financial trouble by October 2023 and both Lamont and Murray jointly decided Scotparts should stop trading due to debts it was unable to pay.

However, just two days earlier, the company received more than £300,000 from a customer.

Within one week of this payment, Lamont gave Murray £194,400 knowing that the company was insolvent and owed money to creditors.

Further amounts totalling £148,144 were paid by the pair to two connected companies during the same period.

Lamont, of Elliston Road, Howwood, Renfrewshire, and Murray, of Manse Road, Motherwell, have been banned as a directors for the next nine years.

Scotparts owed more than £900,000 when it went into liquidation in January 2024.

Mike Smith, Chief Investigator at the Insolvency Service, said:

Hazel Lamont and Nicola Murray knew, or at the very least, ought to have known that their company had significant liabilities to creditors.

Despite knowing the perilous financial state of their company, Lamont paid £194,400 to her daughter. This was not her money – it was company money which should have been paid to customers and suppliers.

The pair also transferred money to two connected companies, again depriving creditors of these funds.

Lamont and Murray have now been banned as company directors until May 2034 following our investigations into their misconduct.

Scotparts received £301,543 from a customer during the period of 18 and 19 October 2023.

The company also owed another creditor – a manufacturer of goods – £362,585 in outstanding invoices.

Lamont and Murray decided that Scotparts would cease trading on 20 October.

However, between that date and 25 October, Scotparts paid £194,400 to Murray.

In the week following the pair’s decision to place the company into liquidation, £96,899 was also transferred to I&H Distribution and Scotparts UK Ltd where Murray was a director.

An additional £51,245 was transferred to Scotparts Holdings Ltd, which listed Lamont as one of its directors.

No refunds or payments were made to either the buyer of goods or the manufacturer.

Six creditors submitted claims with a total of £916,899 when Scotparts went into liquidation.

The Secretary of State for Business and Trade accepted disqualification undertakings from Lamont and Murray, and their bans started on Tuesday 20 May and Friday 23 May respectively.

The undertakings prevent them from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

• Hazel Lamont is of Elliston Road, Howwood, Renfrewshire. Her date of birth is 13 August 1950
• Nicola Murray is of Manse Road, Motherwell. Her date of birth is 27 August 1970

The press release issued by the Insolvency Service on 20 May 2025.

Carl Barnes, the director of Central Plumbing & Heating Lincoln Ltd, made false statements about the company’s turnover to secure a Bounce Back loan .

• Carl Barnes applied for a Bounce Back loan of £47,500 for Central Plumbing & Heating Lincoln Ltd.
• He declared the company had a turnover of £340,000 when in reality it was nothing.
• Barnes has been banned as a company director for 11 years. The Secretary of State accepted a voluntary disqualification undertaking offered by him.

The director of a plumbing and heating company has been banned for 11 years after overstating his company’s turnover by hundreds of thousands of pounds to secure a Covid Bounce Back loan.

Carl Barnes, of Ollerton Road, Retford, was the director of Central Plumbing & Heating Lincoln Ltd, which was incorporated in April 2016.

The company, based on Wavell Drive in Lincoln, made a small profit in its first year of trading, but dormant accounts were filed by Barnes in the following years.

In August 2020, the 45-year-old falsely claimed the company had a turnover of £340,000 for 2019, despite the actual turnover being £0.

He received a Covid Bounce Back loan for the company of £47,500 which it was not entitled to.

Barnes was disqualified as a director for 11 years on 17 April 2025, with the ban beginning on 8 May 2025.

Kevin Read, Chief Investigator at the Insolvency Service, said:

Carl Barnes exploited the Bounce Back Loan Scheme by providing false information about his company’s turnover.

His dishonesty has resulted in this significant director disqualification, which prevents him from forming or managing a company for more than a decade.

The Insolvency Service will continue to investigate those who abused this scheme – designed to help small businesses during the pandemic – and bring them to justice.

Central Plumbing & Heating Lincoln Ltd went into liquidation in October 2022.

The disqualification order prevents Barnes from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

• Carl Philip Barnes is of Ollerton Road, Retford, Nottinghamshire. His date of birth is 14 June 1979.

The press release issued by the Insolvency Service on 19 May 2025.

Suspended sentence for Bounce Back Loan fraudster.

• Rico Iheagwara fraudulently applied for two £20,000 Bounce Back Loans during the summer of 2020
• Iheagwara’s SJR Recruitment Limited company was not trading at the time of the applications
• SJR Recruitment was placed into liquidation in 2021 with liabilities of more than £67,000

A recruitment consultant who fraudulently spent Covid support funds for personal purposes has been handed a suspended sentence.

Rico Iheagwara secured two Bounce Back Loans worth £20,000 each from different banks for his Essex-based SJR Recruitment Limited company when businesses were only entitled to a single loan under the scheme.

Iheagwara, 36, of River Meads, Stanstead Abbotts, Hertfordshire, was sentenced to 18 months in prison, suspended for 18 months, for fraud when he appeared at St Albans Crown Court on Friday 16 May.

He was also ordered to complete 120 hours of unpaid work and 15 days of rehabilitation activity.

David Snasdell, Chief Investigator at the Insolvency Service, said:

Rico Iheagwara blatantly abused a taxpayer-backed scheme designed to support genuine small businesses through the pandemic. He knew he was not entitled to support yet continued with his fraudulent applications nonetheless.

Iheagwara’s business was not trading at the time of his application so he was not entitled to a single penny from the scheme, let alone the £40,000 he fraudulently secured.

Tackling Covid support scheme abuse remains a key priority for the Insolvency Service and we will not hesitate to prosecute fraudsters such as Iheagwara who stole from the public purse during a national emergency.

SJR Recruitment was incorporated in January 2017 with Iheagwara as its sole director. The company’s registered office address was on High Road in Loughton.

Iheagwara was also the sole signatory on both company bank accounts which were opened in May 2020, just one month before his first fraudulent application.

For both applications, made in June and July 2020, Iheagwara claimed the company’s turnover was £82,000.

Iheagwara transferred the first £20,000 loan into his personal account on the same day he received the funds. For the second loan, he moved all £20,000 into his personal account the following day.

None of the £40,000 was used for the economic benefit of his business. Insolvency Service analysis of bank statements suggested that the funds were used for everyday expenses and paid to various family members.

In interviews, Iheagwara said he spent the funds on rent, paying off personal finance and supporting his children.

SJR Recruitment went into liquidation in April 2021. No repayments were made on the loans.

The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.

Further information

• Rico Iheagwara is of River Meads, Stanstead Abbotts, Hertfordshire. His date of birth is 21 August 1988

The press release issued by the Insolvency Service on 19 May 2025.

Suspended sentence for bankrupt who defrauded HMRC.

• Former Chinese takeaway owner Zhang Jin Chen sold his house in Portsmouth and spent money from the sale in shops such as Apple and Burberry
• Chen knew he owed HM Revenue and Customs (HMRC) more than £43,000 in VAT at the time he made the purchases and other cash withdrawals
• The 51-year-old then filed for bankruptcy, claiming he only had £20 in his bank account

A former Chinese takeaway owner who withdrew thousands of pounds from his bank account and bought items from shops such as Apple and Burberry instead of settling his tax bill has been sentenced.

Zhang Jin Chen owed HM Revenue and Customs (HMRC) more than £43,000 in VAT when he sold the house he owned with his then wife in Portsmouth in the autumn of 2020.

However, Chen disposed of £107,550 of his proceeds from the house sale without paying HMRC back.

The 51-year-old then applied for his own bankruptcy the following summer, claiming he only had £20 in his bank account, and £100 in cash.

Chen, of Havant Road, Portsmouth, was found guilty of fraudulently disposing of property as a bankrupt under the Insolvency Act 1986.

He was sentenced to 12 months in prison, suspended for 18 months, at Portsmouth Crown Court on Friday 16 May.

He was also ordered to complete 150 hours of unpaid work and 10 days of rehabilitation activity.

Mark Stephens, Chief Investigator at the Insolvency Service, said:

Zhang Jin Chen had the money available to pay the VAT he owed to HMRC twice over following the sale of his house but chose not to do so. Instead, he withdrew huge sums of money in cash and made purchases from the likes of Burberry and Apple.

Individuals who are declared bankrupt commit a criminal offence when they put assets out of the reach of creditors in the five years leading up to their bankruptcy.

Chen clearly intended to conceal his affairs and defraud HMRC so he could be more than £100,000 better off, instead of little over £60,000 if he had paid his debts.

Chen ran a Chinese takeaway called Fortune House from an address on Albert Road in Portsmouth. He registered Fortune House as a business with HMRC in February 2012 but did not register it for VAT.

HMRC officials visited the takeaway in February 2020, finding evidence that Fortune House should have been VAT registered since December 2012.

Chen applied for bankruptcy in July 2021, stating that he knew he owed HMRC £43,876 in VAT but that he could not repay the debts.

However, in October 2020, Chen and his ex-wife sold their jointly owned house on Garnier Street in Portsmouth.

Over the next two months, Chen withdrew his proceeds of the sale in cash, the largest of which were two withdrawals of £30,000 in November 2020.

He also spent more than £3,500 on Apple products in November and December 2020 and a further £880 on a purchase from Burberry nine days before Christmas.

Chen signed a five-year Bankruptcy Restrictions Undertaking in March 2022 restricting him from being able to borrow more than £500 without disclosing his bankrupt status.

The restrictions also prevent him holding certain roles in public organisations.

The Insolvency Service is seeking to recover the funds under the Proceeds of Crime Act 2002.

Further information

• Zhang Jin Chen is of Havant Road, Portsmouth. His date of birth is 26 June 1973

The press release issued by the Insolvency Service on 16 May 2025.

People who started a debt relief order application before April 2024 but did not complete the process are being offered refunds for any fees paid.

• Almost 4,000 people are still due a refund for debt relief order applications they paid for but did not submit
• The Insolvency Service has written to those due a refund and £65,000 has already been reimbursed since March
• Refunds worth a total of £500,000 are still available going back to 2016 for those who did not finish the application process

The Insolvency Service is trying to refund money to 4,000 people who made payments towards a debt relief order (DRO) but did not submit their application.

Before April 2024, a £90 fee was payable when making a DRO application.

Applicants could choose to pay in full or in instalments.

However, many thousands of people made a payment towards the fee, but did not submit their application.

The £90 fee was scrapped by the Government in April 2024 to make things easier for people with debts to access the help they need.

The Insolvency Service still has £500,000 to return to individuals who paid towards these incomplete applications, going back to 2016.

The agency has already written to 5,000 people due a refund, with around 1,000 responding and £65,000 being reimbursed since March so far.

Another letter is due to be sent out in the coming days.

Caroline Shanahan, senior leader in the Personal Insolvency Team at the Insolvency Service, said: “We sent letters to all 5,000 people who are due a refund, but many of them have not come back to us. There are still about 4,000 people who have not responded.

We want to return their money as soon as possible, but they need to contact us after receiving the letter.

In some cases, people may have changed their email address or moved home, meaning we do not have their current details to contact them. Those people can still apply for a refund if they paid towards a debt relief order that was not submitted, they just need to get in touch and let us know.

Applications for DROs are made through authorised intermediaries. Up until April 2024, payments were made by the individual as part of the application process, either in full or in instalments.

The Insolvency Service is keen to provide refunds directly to the individuals who made payments towards the application fee but did not complete their application for whatever reason.

If you are owed a refund

If you feel you are due a refund after making a payment but not submitting a debt relief order application, please contact dro.preorder@insolvency.gov.uk

To request payment into your bank account or building society, please include the following details:

• Debt Relief Order application number (if known)
• Your name
• Your address
• Your telephone number
• Bank/building society Name
• Account name (as shown on bank statement)
• Bank account number (full 8 numbers)
• Bank sort code (full 6 numbers)
• Building Society roll number (if applicable)

All applications will be fully verified against system inform to prevent fraudulent claims.

If you would like to request a cheque instead, please state this in your email.

If your contact details have changed since making the application, please include your previous name and address alongside your current details.

If payment was made by a charity or third party on your behalf, please provide the details of the organisation that made the payment.

You can also write to us, including the above information in your correspondence, at: The Insolvency Service DRO Team, C/O Met Office, Fitzroy Road, Exeter, EX1 3PB.

ENDS

Further information

• Letters were sent to individuals this week, dated May 2025.
• Any interested parties with further questions can call the Insolvency Service customer service helpline on 0300 678 0016. It is open Monday to Thursday from 9am to 5pm and on Fridays from 9am to 3pm