Licence refused after haulier chose suppliers over tax payers

Wincanton, Somerset-based PHS Group SW did not declare any licensing or insolvency history when applying for the operator licence, but noting that a new start business wanted to run a significant number of lorries, more information was requested by the office of the TC.

Further investigations found that it was taking over Purple Hire Solutions, a company with which it shared the same registered address, same contact number and same five operating centres.

In a written decision by the West of England TC, Kevin Rooney said company director Carmel Parker had explained to the OTC that Purple Hire Solutions entered administration and PHS Group SW had purchased its assets and goodwill.

She had not been a director of the insolvent business, but held a minority share in it. Her husband Ashley Parker had been a director and was the majority shareholder along with Stephen Smith.

At a Bristol public inquiry to discuss the application, Rooney asked Carmel why she had answered ‘no’ to a question in the paperwork about any involvement with a business that had entered administration.

She was unable to explain this other than pointing out that it had been completed at a very stressful time.

Ashley, who was also proposing to be director of PHS Group, told the PI that Purple had suffered due to the pandemic and a subsequent repayment plan with HMRC had failed.

However, it emerged in a letter of support from Purple director Smith that the haulier had shown preference to some creditors over HMRC; he said the company had conserved cash to meet payroll and critical suppliers, which meant liabilities to the Crown grew.

In his decision, TC Rooney said Carmel had made, or allowed to be made on her behalf, false statements on an application form.

He said this was to hide the link to a family business entering insolvency.

Rooney also said that at a conservative estimate, the period of time during which money was not paid to HMRC, Purple Hire had not met financial standing requirements for at least a year.

“That is a significant negative feature in considering this application now that Ashley Parker is a statutory director,” he said.

The TC described it as clear unfair competition and meant that the applicant was unfit to hold an O-licence and so he refused the application.