Council / Council convener banned from company directorship over £170k unpaid tax bill
Andrea Manson receives three and a half year disqualification
COUNCIL convener Andrea Manson has been banned from company directorship after a business she was part of went into liquidation while owing over £170,000 in tax.
The UK Government’s Insolvency Service said that Manson held a “position of responsibility and respect”, but had failed to ensure her company met its tax obligations.
Manson was one of two directors of Mid Brae Inn Limited during a four year period in which it did not pay more than £110,000 in VAT and almost £60,000 in PAYE and National Insurance.
Between 2019 and 2023 just £6,000 was paid to HM Revenue and Customs (HMRC) – despite more than £800,000 being paid into the company’s bank account.
Shetland North councillor Manson has been disqualified from being a company director for three-and-a-half years, starting today (Wednesday).
The council convener was not present at today’s full council meeting, which she would ordinarily chair, with budget setting and council tax for the 2026/27 financial year the main topic of discussion.
She did not respond to attempts from Shetland News to contact her this morning.
The UK Government’s Insolvency Service released a statement about Manson in the wake of her disqualification.
Its chief investigator Neil North said Manson “holds a senior position in local government” and was elected into office by “taxpayers who will be required to pay council tax and other taxes.”
“This is a position of responsibility and respect, yet she failed to ensure her company met its own tax obligations, leaving HMRC owed more than £170,000,” he said.
“Directors have a duty to ensure their companies pay the taxes they owe. This disqualification should serve as a warning that we will take action against those who fail to meet these basic responsibilities.”
Mid Brae Inn Limited failed to make any VAT payments to HMRC between April 2019 and January 2023, despite continuing to trade.
When the company went into liquidation in May 2023, it owed £110,675 in VAT and surcharges, and a further £59,227 in unpaid PAYE and National Insurance contributions dating back to 2018/19.
Including smaller amounts in corporation tax, the company’s total debt to HMRC was at least £178,860.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Manson, and her ban started today.
It prevents her from being involved in the promotion, formation or management of a company, without the permission of the court.
Manson’s co-director at Mid Brae Inn Limited, Catherine Diane Davies, was also disqualified as a company director for three-and-a-half years, with her ban coming into effect in November 2025.
Shetland Islands Council was also contacted for comment.
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