Two former directors linked to a company that imported hundreds of thousands of vapes disguised as medical equipment have been banned from running companies for nine years after UK authorities uncovered almost £15 million in unpaid taxes.
The Insolvency Service said on Sept. 10 that Border Force intercepted 352,688 vapes addressed to YSK Enterprises Limited at Harwich in 2023. The goods had been declared as medical nebulizers but were found to be e-cigarettes.
According to the government, YSK had imported large quantities of vapes from China between February and April 2023. HM Revenue and Customs (HMRC) later calculated nearly £15 million in unpaid value-added tax (VAT) and customs duty, plus £437,101 in corporation tax.
The company went into liquidation in March 2024. Companies House records show that Kyle John McGinness’s registered directorship ended on Dec. 12, 2022, and Leanne Moynes was appointed a director on the same date.
McGinness, 24, received a nine-year disqualification earlier this year. Moynes, 37, also received a nine-year ban, effective Aug. 13.
Separate misconduct findings published for Moynes say HMRC assessed YSK for £14.94 million in unpaid VAT and customs duty. The agency also claimed £437,101 in corporation tax. Investigators said missing company records prevented them from determining what happened to more than £1.6 million in reported assets.
Dave Magrath, the Insolvency Service’s Director of Investigation Services, said the company had gone to “considerable lengths” to disguise its imports and then told HMRC it owed no tax.
The case is another example of UK enforcement targeting the illicit vape trade, but the misconduct went well beyond selling unauthorized products. Authorities say the company disguised the nature of its imports, failed to pay millions in taxes, and left investigators without complete accounting records.
The disqualification orders prevent McGinness and Moynes from forming, promoting, or managing a company without court permission. Both bans are scheduled to remain in force until 2035.
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