A controversial scheme enabling company directors to shed millions in debt obligations continues to operate despite government intervention to shut it down. The Atherton scheme, marketed as a “legal alternative to using insolvency practitioners”, has helped more than 1,000 company directors escape their financial responsibilities.
The Insolvency Service’s September closure of seven companies linked to the scheme has proved ineffective, with investigations revealing the programme remains active through newly established entities. The scheme’s core operation involves directors paying a fee to Atherton, typically thousands of pounds, before selling their struggling companies for £1.
At the centre of these operations is the enigmatic Neville Taylor, whose name appears as director across hundreds of businesses. Despite his extensive directorship portfolio, Taylor maintains an unusually low profile, with insolvency practitioners often struggling to locate him or verify his existence.
Notable users of the scheme include hospitality entrepreneur Piers Adam, former owner of prestigious venues Mahiki and Whisky Mist, and Mat Feakins, an ex-Tory council chairman. The scheme’s mechanics allow directors to potentially retain assets while abandoning debts, effectively circumventing traditional insolvency procedures.
John Irvin, the 57-year-old orchestrator behind Atherton, maintains the scheme’s legitimacy despite mounting scrutiny. He acknowledges the Insolvency Service’s concerns but claims to have modified their approach, emphasising they “do not give any advice to directors.”
Industry experts, including Stephen Hunt from Griffins, warn that the scheme’s operators and users risk breaching multiple insolvency laws. The Insolvency Service is reportedly considering action against directors who have utilised the scheme, while HMRC maintains silence on the matter.
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