The company wrongly claimed £50,000 of taxpayer support during the pandemic through Eat Out to Help Out and furlough schemes.
Ifraz Nabi, 41 from Manchester, has been disqualified as a director for 7 years after wrongly claiming £30,000 through the Eat Out to Help Out scheme and over £20,000 through the Coronavirus Job Retention Scheme.
Ifraz Nabi was the sole director of New York Krispy Fried Chicken, a chicken takeaway shop on Stockport Road, in Greater Manchester.
The company behind the takeaway, New York Krispy Fried Chicken Limited, went into liquidation in November 2020, triggering an investigation by the Insolvency Service.
Investigators discovered that Nabi failed in his obligations as director to maintain adequate accounts and financial records.
As a result, the claims he made through the government support schemes could not be supported, as there was insufficient information relating to sales and no explanation of how such sales could have been achieved while staff was on furlough.
Even had there been records permitting his claim under the Coronavirus Job Retention Scheme, which allowed companies to pay staff furloughed while businesses were closed, the shop was not eligible to claim funding through the Eat Out to Help Out scheme as it was only for restaurants with indoor seating.
Takeaway outlets with no seating were excluded, and although New York Krispy Fried Chicken had some seating, it received the majority of its orders through apps, which were also excluded under the scheme.
In addition, Nabi had failed to register the company for tax and when the business subsequently went into liquidation due to the effects of the pandemic and lockdown, the liquidators were unable to assess how much the company owed in unpaid tax.
The Secretary of State for Business, Energy, and Industrial Strategy accepted a disqualification undertaking from Ifraz Nabi, after he admitted to failing to maintain, preserve or deliver adequate accounting records and failing to register an account for VAT required.
His disqualification is effective from 31 May 2022 and lasts for seven years.
The disqualification undertaking prevents Nabi from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.