Skip It Containers and Recycling Ltd, a family-run business in Newhaven, has been ordered to pay compensation of £20,460 and was fined £700 for failing to pay a security bond owing to HM Revenue and Customs (HMRC).
The company was also ordered to pay costs of £200 and a victim surcharge of £70.
Husband and wife John Penfold, 77, and Stephanie Penfold, 69, and their children Mark Penfold, 48, and Rachael Penfold, 44, are the directors of Skip It Containers and Recycling Ltd, and were required to pay a security bond of £133,300.
Based on their previous trading history, the company was sent a ‘Notice of Requirement’ to protect the public purse against any future tax defaults. But they failed to pay the bond and continued to trade, contravening the Value Added Tax Act 1994.
Skip It Containers paid part of the security bond ahead of the sentence handed down at Brighton Magistrates’ Court on Wednesday, November 7.
Richard Wilkinson, Assistant Director, Fraud Investigation Service, HMRC, said: “This family was wrong to think they could get away with trading without following the rules.
“Anyone who is VAT registered, but has a history of failing to meet their tax obligations, may be required to pay a security bond as a precautionary measure to protect future tax revenue.
“It is a criminal offence if the bond is not paid, and only right that we tackle those businesses who commit this type of crime.”