A ROSSENDALE businessman, who went bust owing the taxman nearly £120,000, has been banned from being a company director for four years.

Michael Gribben’s ESM (North West) Ltd managed to pay out £693,000 to trade creditors and £476,000 was withdrawn as cash.

But an Insolvency Service probe found that the electrical contractors owed significant amounts in VAT and pay-as-you-earn, and National Insurance contributions.

Gribben, 40, of Kirkhill Avenue, Haslingden, has been disqualified until 2019, from June 6, as a result.

No payments were made to HM Revenues and Customs between 2009 and February 2013, when the firm ceased to trade, according to officials.

An investigation found that ESM’s turnover ranged from £198,245 to £563,908 over the period and the valley company charged VAT on goods and services. And as an employer, it should have been registered for employment taxes.

The firm went into liquidation with assets of only £6,436 and liabilities totalling £136,000, of which £120,000 was owing to HMRC. Only £600 was owed to one trade and expense creditor.