Until the police finish their inquiries its not known exactly how I4Y operated but they are not an approved investment company as they are as Mike quoted not FSA registered, you will note on companies house website that I4Y need to file their first yearly financial accounts in November 2021 so this will prove exactly what the company achieved in its first year of trading , failure to do this can result in action from the UK regulators, this will also confirm if the company director of I4Y traded the money through the company or through his private account,I'm going to go hypothetical here but still remain factual.
On the basis of legitimacy being true then I4U being set up as a limited company would be for tax purposes as well as the protection that a limited company offers; i.e. personal assets are protected as long as the company is run properly and the directors are not at fault for the failings of the business.
That being said, assuming all "income" generated belongs to the company then I am positive that HMRC would be taking a close look at the tax returns of the director and sole shareholder as the funds to buy a mclaren of approx £133,000 as well as the funds required to be a deposit/pay in full for a new property would have to be extracted through a combination of salary and dividends and would hit the 38.1% bracket.. High income child benefit charge would also kick in but lets not digress with that..
Now if both of said assets are assets of the company then a P11D charge would kick in in April for the car (nice tidy sum to HMRC there) as well as a market value rent for the property (I would hazard a guess at circa £1,000 per month for this) which would no doubt give him an overdrawn loan account (32.5% of balance - HMRC rubbing hands gleefully).
Now a few more facts; a quick search on Companies House shows that there is 1 share in issue with a nominal value of £2; typically we would expect to see 2 shares with a nominal value of £2 so we conclude that the company cannot even be set up properly as I am positive he meant 2 shares worth £1 each (ergo nominal value of £2).
What Dec has also done is set himself up as sole shareholder and director therefore, ultimately, being the sole person to blame and therefore exonerating his girlfriend/wife as no doubt she would just be an employee.
The above is on the basis that a company is run properly however, if it is proven that the actions of a director are the ultimate downfall of a company (negligence, paying Peter to save Paul (i.e. taking company money personally rather than paying creditors), fraud, etc.) then I believe that a limited company does not offer any protection whatsoever over personal assets. As to whether that is just the director's share I do not know as I am not an Insolvency Practitioner.
Company’s annual accounts - called ‘statutory accounts’ - are prepared from the company’s financial records at the end of the company’s financial year.
You must always send copies of the statutory accounts to:
- All shareholders.
- People who can go to the company’s general meetings
- Companies House
- HM Revenue and Customs (HMRC) as part of your Company Tax Return.
Obviously there could be winners and losers in this one and anyone that does lose money should ensure they report all gainers to HMRC to ensure they pay their tax on what could turn out to be "Their Money"
I'm sure all investors are aware of the ongoing police inquiry and should really inform the investigating officer of any funding they have put into I4Y or the company directors private or paypal, accounts as this can help speed up the inquiry, and if it does end up going through crown court the judge will look at the honest people first.