Raja Usman and his wife Khair Un Nisa, directors of the Derby-based Umbrella Care Ltd, have been disqualified as company directors for their involvement in a £30 million tax evasion scheme. The company, which supplied workers to the NHS care sector, under-declared taxes to HM Revenue and Customs (HMRC) between 2017 and 2020.
The investigation revealed that Umbrella Care Ltd, under the direction of Usman and Nisa, knowingly submitted inaccurate VAT, PAYE, and NIC returns, under-declaring more than £33 million in taxes. This evasion covered more than £12 million in VAT and over £21 million in PAYE and NIC.
Raja Usman, also known as Usman Raja, was disqualified for 14-and-a-half years at an uncontested hearing of the High Court in London. His disqualification order commenced on Tuesday, 30 July 2024. In addition to the disqualification, the 38-year-old was ordered to pay costs amounting to £5,399.10.
Khair Un Nisa, 41, had previously signed an 11-year disqualification undertaking in September 2023.
Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, stated, “Raja Usman and Khair Un Nisa deliberately under-declared the amount of tax Umbrella Care was expected to pay by tens of millions of pounds. This was money that should have been used to provide vital public services and investment in areas such as schools, hospitals, and roads.
Umbrella Care Ltd was wound-up in November 2020 following a provisional liquidation petition from HMRC. Insolvency practitioners from Azets Holdings Ltd, appointed as liquidators, have recovered more than £12 million in assets from the pair since the company’s liquidation.
The joint liquidators have traced and recovered approximately £5.2 million from various bank accounts and an additional £7.3 million from the sale of 14 properties. Further investigations into funds transferred overseas and to third parties are expected to bring in an additional £1.5 million, raising the total estimated recoveries to around £14 million.
Louise Brittain, joint liquidator at Azets, commented, “Azets have conducted extensive investigations and litigation in this case to recover wrongfully removed company funds, and this has led to a considerable return to creditors. We are pleased that these actions have enabled the Insolvency Service to obtain the disqualifications and undertakings that they have, and this case demonstrates the strength of private and public sector working.
The disqualifications ban Usman and Nisa from being involved in the promotion, formation, or management of a company without the court’s permission until 2034 and 2039, respectively.
This case highlights the ongoing efforts of the Insolvency Service and HMRC to hold individuals accountable for financial misconduct and to recover funds owed to the public purse.
