Two Glasgow‑based directors have been barred from holding company office for nine years after a large‑scale tax‑evasion scheme involving disposable e‑cigarettes was uncovered.
What the authorities found
Border Force officers intercepted a shipment of 352,688 units addressed to YSK Enterprises Limited in Harwich in 2023. The goods were labelled as medical nebulisers but were identified as disposable vapes, a mis‑labelling that allowed the import to avoid the usual duty and VAT charges.
HMRC’s subsequent calculation put the unpaid VAT and customs duty at approximately £15 million for the 2023‑2024 tax year. In addition, the agency estimated a corporation‑tax liability of £437,101 for the same period.
Director bans and timeline
The Insolvency Service confirmed that both directors – Kyle McGinness, 24, and Leanne Moynes, 37 – were each disqualified for nine years. McGinness’s ban took effect in June 2026; Moynes’s ban starts on 13 August 2026 and runs until 2035.
The key events are:
- 2023 – Border Force intercepts the mis‑labelled vape shipment.
- 2024 – YSK Enterprises goes into liquidation after failing to submit corporation‑tax returns.
- June 2026 – Kyle McGinness is disqualified for nine years.
- 13 August 2026 – Leanne Moynes’s nine‑year disqualification begins.
- 10 September 2026 – GOV.UK press release announces the bans and the tax‑evasion figures.
Company background
YSK Enterprises Ltd is a Glasgow‑based firm that imported large quantities of disposable e‑cigarettes from China between February and April 2023. The company told HMRC it owed no VAT on the sales and failed to file any corporation‑tax returns, prompting the tax authority’s investigation.
Financial impact
The £15 million figure represents the combined unpaid VAT and customs duty for the 2023‑2024 period. The £437,101 corporation‑tax liability is calculated on the same period’s profits, according to HMRC’s assessment.
Both figures are presented in British pounds (£) as supplied by the GOV.UK press release; no conversion has been applied.
Key details at a glance
| Director | Disqualification period | Tax liability (VAT & duty) | Corporation tax liability |
|---|---|---|---|
| Kyle McGinness | 9 years (2026‑2035) | ≈ £15 million | £437,101 |
| Leanne Moynes | 9 years (2026‑2035) | ≈ £15 million | £437,101 |
Source: GOV.UK – Director disqualifications.
Implications for the UK market
The bans send a clear signal to importers that mis‑labelling to avoid tax will be met with severe regulatory action. The nine‑year director bans are among the longest imposed for customs‑related fraud, underscoring the government’s focus on curbing illicit vape imports that undercut legitimate retailers and deprive the Treasury of revenue.
For the vaping sector, the case highlights the importance of accurate product classification. Retailers that rely on compliant supply chains may see increased scrutiny of their import documentation, while customs officers are likely to maintain heightened vigilance at ports such as Harwich.
What remains unknown
The press release does not disclose the exact profit margin of YSK Enterprises, nor does it detail how many other firms may have used similar mis‑labelling tactics. HMRC has not indicated whether further investigations are underway into related importers.
Overall, the case illustrates how a single shipment of over 350,000 vapes can generate a multi‑million‑pound tax gap, and how the UK’s enforcement agencies are prepared to impose both financial and personal penalties.