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Fighting back after VED fines

4th June 1992, Page 16
4th June 1992
Page 16
Page 16, 4th June 1992 — Fighting back after VED fines
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Which of the following most accurately describes the problem?

• North Western Licensing Authority Martin Albu took no action against the licence for 25 vehicles and 20 trailers held by John K Philips (Haulage Contractors), of St Helens, after he was told that the company was slowly coming out of the financial problems that had led to vehicle excise duty offences.

Managing director John Philips told a Manchester disciplinary hearing that four sets of convictions had arisen out of dishonoured cheques when taxing a batch of four vehicles.

Fines, back duty and costs imposed were being paid at £900 per month.

Because of the recession, work had reduced and customers took longer to pay said Philips. When the bank refused to increase the company's overdraft facility from £120,000 to £150,000, it initially tried to trade through the problem. The system was that cheques would be paid when represented but the VED cheques were not represented and so did not join the queue for payment.

Philips accepted that it was not an honourable way of trading. He said that negotiations with a merchant bank had been completed for a refinancing ex ercise. Some £335,000 capital had been injected, repayable in 25 years backed by a pension and mortgage. The interest payments were £3,700 per month.

Debts were now factored and there was a computer link with the bank, so the cash required could be seen each morning. If funds were needed the factor was phoned to get them transferred. Work was increasing and the company was seeking BS5750 accreditation.

After examining management accounts, Albu commented that at least the company seemed to have a surplus of assets over liabilities.

For the company, John Back house said Philips had been concerned to keep 52 people in employment and preserve what was a good business.

Albu said that in 1986 Philips was found not to be of good repute after personally being concerned in vehicle excise duty offences. He seemed to have taken a rather casual attitude over the payment of his dues to the Government. The company was still in a difficult financial position, though its accountant felt it was slowly coming through it. He was prepared to allow it to continue, but he would want upto-date accounts when the licence was due for renewal in January.


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