Takeaway director banned for VAT failings after £170,000 HMRC debt
Posted by Emma on 9th Nov 2025 Reading Time:
A Burnley takeaway boss has been disqualified from serving as a company director for five years after failing to register his business for VAT, leaving HM Revenue & Customs (HMRC) owed nearly £170,000.
Zaheer Ul-Qamar, 44, was appointed director of Flames Grill Ltd, based on Hammerton Street, in July 2020. The company, however, should have been registered for VAT long before his appointment — as early as 2017 — due to exceeding the annual VAT registration threshold of £85,000.
Despite clear indicators that the business had passed this threshold, Ul-Qamar took no action to register or remit VAT payments between January 2021 and November 2023. HMRC eventually raised assessments totalling £72,086 in unpaid VAT during that period, excluding penalties and interest.
Insolvency investigation reveals systemic failures
An HMRC investigation into Flames Grill Ltd uncovered multiple compliance failings. Correspondence sent to the company in March 2024 noted that Flames had repeatedly failed to provide key financial documentation, including cash sales records .
Analysis of Flames’ online food order platform and card payment records showed the business had surpassed the VAT threshold months before Ul-Qamar’s appointment — yet no attempt was made to rectify the oversight or register the business.
When the company was liquidated, total liabilities reached £189,228, with £168,669 owed to HMRC. The Insolvency Service ruled that Ul-Qamar “failed to ensure Flames Grill Ltd registered for VAT” and that he “knew or ought to have known” that the business was trading above the threshold.
His disqualification began on 10 October 2025 and will run for five years.
Lessons for hospitality operators
This case is a sobering reminder for hospitality and takeaway operators of the importance of maintaining proper tax compliance, especially as trading volumes rise through online delivery platforms and digital payments.
Failing to register for VAT when required can lead to severe financial consequences — not just for the business, but personally for directors, who can be disqualified and held accountable for negligence.
For small business owners, particularly in foodservice and takeaway sectors where turnover fluctuates seasonally, this underscores the need for active financial oversight and timely communication with accountants. VAT registration is not merely a bureaucratic step; it is a legal requirement that safeguards both reputation and continuity.