IDG62820 - Department of Trade and Industry (including Trading Standards) (other than NMW disclosures): Insolvency Service Disqualification Unit

DTI Insolvency Service Disqualification Unit

Insolvency practitioners and Official Receivers report unfit conduct by directors of insolvent companies to the DTI Insolvency Service’s Disqualification Unit. That unit will then determine whether to commence disqualification proceedings to prevent the director from acting as a company director in the future.

Why share information with the Disqualification Unit?

The Disqualification Unit may need tax information to show a course of conduct by the director, for example details of the director’s failure to keep PAYE up to date or to issue VAT invoices. This information may not always be available from the company’s own records.

Ensuring information is shared lawfully

As set out at IDG54000 liquidators, administrative receivers and administrators ‘stand in the shoes of’ the company. However the Disqualification Unit is within the DTI and so is regarded as a third party.

There is no legal gateway to allow disclosure to the Disqualification Unit. Therefore you may only disclose information regarding a company to the Disqualification Unit with the consent of the company (see IDG43000 for further guidance regarding consent). This consent should be provided by the liquidator, administrative receiver or administrator appointed to deal with the company’s affairs. Generally the DTI will automatically supply you with this prior to making a request for tax information.

Which part of HMRC can disclose this information?

All offices are permitted to disclose this information directly to the Disqualification Unit within the guidance below.

Information which can be disclosed

Disclosure must be limited to information about the company that it would ordinarily be aware of. For example:

• correspondence between HMRC and the company
• details of payments made by the company
• reports of meetings attended.

You cannot disclose:

• internal HMRC memos which the company would not be aware of
• information about the directors’ personal affairs.

Procedure to follow

You must ensure the Disqualification Unit has provided a consent from the liquidator, administrative receiver or administrator appointed and that only information as described above is supplied.

You cannot supply any information about the directors’ personal affairs as they have not given their consent to the disclosure.

Legislation which allows disclosure

There is no legal gateway. Disclosure is by consent, see IDG43000.

Devolved administrations

This guidance applies to the whole of the United Kingdom.

Further guidance

If you receive a request for information and are unsure how to proceed, please contact Information Strategy for advice. See IDG90100 for contact details.