AN OWNER has been fined after his business failed to pay more than £250,000 to HMRC.

ASK Plastics, which is based in Bakers Wharf, Millbank Street, was ordered to pay £264,000 VAT as part of a security requirement when it began trading in 2015.

Its owner Anaik Kooner, 26, was also charged with not paying the security figure and pleaded guilty to the charges at Southampton Magistrates’ Court.

He was fined and civil proceedings will be launched to work out how he will pay the money owed to HMRC.

Jason Spellman, prosecutor, told the court that it was the second instance where the money had not been paid to HMRC when required to do so.

He said that because the business dealt with selling products it made at its premises, VAT would need to be paid.

The court heard that Kooner was required to pay the security figure because some of his family members had in the past liquidated companies, including his father.

It meant that the department believed there was a risk he might not pay the figure.

ASK Plastics is a business that manufactures tailor-made polythene. On its website it says it “delivers to polythene merchants, as well as large packaging companies using high volume of polythene on a monthly scale”

Mitigating, Caroline Placido said the firm employed 35 people and was taken over by Kooner in 2015.

She said: “The firm had just gone into administration and then liquidation. He reluctantly took over the business and was only 23 years old at the time.”

Ms Placido added that since he has been in business, Kooner has kept up with his VAT payments.

Kooner, of Cobden Avenue, Southampton, was fined £500. He was ordered to pay £270 costs and a £50 victim surcharge.

His business was fined £2,000, as well as an additional charge of £270 costs and £170 victim surcharge.

Following the hearing, a HMRC spokeswoman said: “Anyone who is VAT registered, but has a history of failing to meet their tax obligations, may be required to pay a security bond as a precautionary measure to protect future tax revenue.

“It is only right that we tackle those businesses who fail to play by the rules by taking such action.”