A COMPANY director and his company have been convicted of failing to hand over nearly £100,000 to the VAT man.

Peter Heppell, 32, of Knapton Close, Strensall, is the only director of Art of Smart Group Ltd, of Clifton Moor. Together they now face a bill of £74,080.28.

According to Companies House, the IT services and electrical firm is currently subject to an active proposal to be struck off the register of companies.

Heppell and his company stood trial at York Magistrates Court accused of not giving HM Revenues and Customs a £97,933 VAT security. Both had denied the charge but were convicted.

The Government can require a company or individual to give it a VAT security if it believes there is a risk the company or individual will not give HM Revenues and Customs the VAT it receives from those with whom it does business.

The company must pay a total of £49,365.14, consisting of £26,715.14 compensation to the Government, a £20,000 fine, a £2,000 statutory surcharge and £650 prosecution costs.

Heppell was also ordered to pay £26,715.14 to the VAT man, but was not fined or ordered to pay prosecution costs.

Art of Smart Group Ltd is overdue in filing its latest accounts and its latest confirmation statement with Companies House. It was registered in Malton until it changed its registered office last month. It had originally registered in Strensall.