Burton fire alarms director disqualified after £300,000 tax shortfall across two companies
A director operating two fire alarm installation businesses has been disqualified after failing to pay more than £300,000 in VAT and PAYE liabilities, following an investigation by the Insolvency Service.
Alex Shorthose ran Siamo Fire and Security Limited and Alex Fire and Security Limited, which together accumulated tax debts of over £300,000 between December 2017 and January 2024. Despite this, he withdrew almost £400,000 personally from the businesses during the same period, while HM Revenue and Customs (HMRC) received only £5,368 in total.
Both companies were ultimately forced into compulsory liquidation in early 2024 after action was taken by HMRC.
The Insolvency Service found that Siamo Fire and Security Limited ceased trading in December 2021, but was not formally wound up. Instead, a second company was used to continue trading, during which similar patterns of non-payment of tax were repeated.
Across both companies, substantial sums were received and used to meet business expenses and employee costs. However, little to no payment was made towards tax liabilities, with significant sums paid directly to Shorthose.
The 42-year-old, from Burton-on-Trent, has now been disqualified from acting as a company director for six years, with the ban running until April 2032. The disqualification prevents him from being involved in the promotion, formation or management of a company without court approval.
Kevin Read, Chief Investigator at the Insolvency Service, said:
“Alex Shorthose used the cynical but well-worn tactic of running up debts at one company, walking away, and starting again at another. His misconduct was not short-lived – it lasted for more than six years across two companies. That is what we mean by abusive phoenixism, and it is deeply damaging. It gives dishonest directors an unfair advantage over competitors who pay their taxes, and it deprives public services of funds they depend on. We will continue to work with HMRC to identify these individuals and stop them acting as company directors.”
Richard Hopwood, Head of Insolvency at HMRC, added:
“We are determined to allow honest businesses to thrive, which is why it’s crucial we work closely with the Insolvency Service and other partners to take action against anyone involved in abusive phoenixism that undermines the tax system. The majority pay the tax that is due, but we will pursue those who refuse to play by the rules.”