Former LGBT charity CEO given boardroom ban as a warning to others30th June 2018
The former CEO and director of LGBT+ domestic violence charity, Broken Rainbow, has been given a three and half year ban on any boardroom activities.
THEGAYUK.com was given notice by the UK’s Insolvency Service that former CEO of Broken Rainbow, Jo Harvey-Barringer who resides in Sussex, has been handed a disqualification on running any company or limited liability company for the next three and a half years. At the time Broken Rainbow was the biggest LGBT charity that served the victims and survivors of domestic abuse and violence.
A disqualifications order as means that Harvey-Barringer will not be able to act as a director of a company, take part directly or indirectly in the promotion, formation or management of a company or a limited liability partnership or be a receiver of a company’s property.
Harvey-Barringer was the CEO and director of LGBT domestic abuse charity Broken Rainbow which collapsed in 2016. The charity had failed to keep payments to the tax office in respect of its PAYE debt.
The charity had several funding streams, however, the bulk of its money was provided by the Home Office. This revenue stream was not guaranteed and the charity had issued several yearly warnings that it would not be able to continue without the governmental funding.
In addition, charity Trustees had serious concerns over how it could continue to deliver its services and sought advice from an Insolvency Practitioner.
Following this, the charity was placed into creditors voluntary liquidation on 5 July 2016.
Payments made to CEO but not HMRC
Between December 2014 and May 2016, payments amounting to £143,671 were made to Jo Harvey- Barringer, at a time when only £3,490 was paid in respect of the PAYE liability incurred during that period. This included a single payment of £12,500 made to her on 08 April 2016.
According to Buzzfeed, the charity received £1.4 million of public funds in grants from the Home Office. The National Audit Office reported that £34,000 was still owed to HMRC.
Anthea Simpson, a Chief Investigator with the Investigation and Enforcement Services, of the Insolvency Service said,
“This ban should serve as a warning to other directors, particularly to those operating in the charity sector, that Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes.
“Deliberate neglect of tax affairs whilst paying others is not a victimless action as it deprives the taxpayer of the funds needed to operate public services and if they put their own needs before them they could be investigated by the Insolvency Service and lose the privilege of limited liability trading.”
On 6 June 2018, the Secretary of State accepted a disqualification undertaking from Jo Harvey-Barringer, after she admitted failing to make payments to HMRC, while continuing to make payments to herself and other creditors.
Harvey-Barringer’s ban is effective from 27 June 2018 and lasts for 3.5 years and means that for the duration of the ban, she cannot directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership.