Husband-and-wife Directors Of Care Recruitment Company Banned After Failing To Pay More Than £30 Million In Tax

31st July 2024

The pair significantly under-declared the amount of tax their company owed to HM Revenue and Customs.

Raja Usman and his wife Khair Un Nisa were directors of Umbrella Care Ltd, a Derby-based company which provided workers to the care sector.

Investigations revealed the company under-declared more than £30 million in tax to HM Revenue and Customs between 2017 and 2020.

Usman was banned as a company director for 14-and-a-half years this month and Nisa signed an 11-year disqualification undertaking in 2023.

Umbrella Care was wound-up in 2020, with liquidators having recovered more than £12 million in assets from the pair since then

The directors of a company supplying NHS workers to the care sector have been disqualified after failing to pay more than £30 million in tax.

Raja Usman, also known as Usman Raja, was the director of Umbrella Care Ltd, with his wife Khair Un Nisa.

The pair, both of Stenson Road, Derby, knowingly submitted inaccurate VAT, PAYE and NIC returns to HM Revenue and Customs (HMRC) on behalf of Umbrella Care between May 2017 and at least April 2020.

More than £33 million in tax owed by the company was under-declared by the pair during this period.

Usman was disqualified for 14-and-a-half years at an uncontested hearing of the High Court in London, with the order starting from Tuesday 30 July 2024.

The 38-year-old was also ordered to pay costs of £5,399.10.

Nisa, 41, signed an 11-year disqualification undertaking which began in September 2023.

Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, said, "Raja Usman and Khair Un Nisa deliberately under-declared the amount of tax Umbrella Care was expected to pay by tens of millions of pounds.

This was money that should have been used to provide vital public services and investment in areas such as schools, hospitals and roads.

The disqualifications ban Usman and Nisa from being company directors until 2034 and 2039 respectively and the liquidators continue to recover millions in pounds of assets worldwide.

Investigations into Usman and Nisa revealed that £12,031,159 in VAT and £21,596,982 in PAYE and NIC was under-declared to HMRC.

Umbrella Care was wound-up in court in November 2020 following a provisional liquidation granted on petition from HMRC.

Insolvency practitioners from Azets Holdings Ltd, who were the previous provisional liquidators of Umbrella Care, were then appointed as liquidators on the same day.

The company went into liquidation owing more than £35 million to HMRC.

The joint liquidators working with HMRC and solicitors from Wedlake Bell LLP have conducted extensive investigations and litigation to recover approximately £5.2 million from numerous bank accounts.

They have also traced the missing funds to 14 properties which have been recovered and sold for approximately £7.3 million.

Further property sales and investigations into funds transferred overseas and to third parties are expected to bring in an additional £1.5 million, bringing the estimated total recoveries to around £14 million.

Louise Brittain, joint liquidator at Azets, said, "Azets have conducted extensive investigations and litigation in this case to recover wrongfully removed company funds and this has led to a considerable return to creditors.

"We are pleased that these actions have enabled the Insolvency Service to obtain the disqualifications and undertakings that they have and this case demonstrates the strength of private and public sector working."

The disqualifications prevent Usman and Nisa from being involved in the promotion, formation or management of a company, without the permission of the court.

Raja Usman is of Stenson Road, Derby. His date of birth is 21 December 1985

Khair Un Nisa is of the same address. Her date of birth is 12 June 1983

Umbrella Care Ltd (company number 10661628)