Andrea Manson’s tax avoiding at the Mid Brae Inn on Shetland led to the Insolvency Service hitting her with a three and a half year directorship ban.
04:30, 25 Feb 2026Updated 07:48, 25 Feb 2026
Shetland Islands Council convener Andrea Manson with 2025 festival leader Calum Grains (who was not involved in the pub business) Photo: SIC
A council boss has been blasted by business watchdogs as she was banned from being a director over massive unpaid taxes. Shetland Islands Council convener Andrea Manson, who owned a pub company, failed to pay HMRC £170,000 ahead of her firm being wound up.
Her tax avoiding at the Mid Brae Inn on Shetland led to the Insolvency Service hitting her with a three and a half year directorship ban. Neil North, Chief Investigator at the Insolvency Service, said: “Andrea Manson holds a senior position in local government and was elected into office by residents of the Shetland Islands, taxpayers who will be required to pay council tax and other taxes.
“This is a position of responsibility and respect, yet she failed to ensure her company met its own tax obligations, leaving HMRC owed more than £170,000. Directors have a duty to ensure their companies pay the taxes they owe.
“This disqualification should serve as a warning that we will take action against those who fail to meet these basic responsibilities.” In 2022, Shetland Islands Council elected made history by appointing Manson as its first female convener.
SIC convener Andrea Manson
Ironically, the publican said she would represent the council with “a public conscience”. But after her pub started to lose trade ahead of Covid lockdown in 2019, she pulled the plug on tax payments.
Manson, 67, was one of two directors of the Mid Brae Inn Limited, which traded as a pub of the same name. Between 2019 and 2023 the company did not pay more than £110,000 in VAT and almost £60,000 in PAYE and National Insurance contributions.
Despite £800,000 going through the company bank account, the directors handed over just £6,000 to HMRC. During the four years that were investigated the company did not pay a penny in VAT payments, despite continuing to trade.
Including smaller amounts in corporation tax, the company’s total debt to HMRC was at least £178,860. The Secretary of State for Business and Trade accepted a disqualification undertaking from Manson, and her ban starts today – February 25..
The Mavis Grind is one of the top sights near Brae(Image: Arterra/Universal Images Group via Getty Images)
It prevents her from being involved in the promotion, formation or management of a company, without the permission of the court. Manson’s co-director at Mid Brae Inn Limited, Catherine Davies, 64, was also disqualified as a company director for three-and-a-half years, with her ban coming into effect in November last year.
As Convener of the Council, Manson was elected by fellow Councillors at the first meeting and she is the civic head of the council area. Her role is similar to that of provost in some council areas. At any meeting of the full Council, the Convener presides.
As Civic Head, the independent councillor has an ambassadorial role acting as the figurehead of Shetland – and is sometimes referred to as the area’s ‘First Citizen’. Despite the tax dodging, Manson was this year able to benefit from a whopping 41% rise in her pay for the council role.
As part of a shake-up of remuneration for council officers her salary was bumped up this year from £26,686 to £37,548. The recommended increases were to “remove barriers” from people standing for election.
In 2022, Shetland Islands Council made history by appointing their first female convener and political leader. Andrea Manson was joined by Emma Macdonald, who took up the role of political leader.
Manson said she would represent the council with “humour, patience, a tender heart and public conscience”. In recent years Manson has been a symbol of modernisation in Shetland.
SIC convener Andrea Manson
Her election was regarded as important in sending a message to the organisers of the famous all-male Up Helly Aa fire festival, which then voted to allow women to take part. In November last year she said the council should not “roll over” and let energy developers do what they want with overhead power lines.
She told a meeting of the council’s environment and transport committee “we really have to ‘fight Shetland’s corner’“. Her comments come as energy company SSEN consulted on power lines stretching from central mainland to the north mainland.
Manson first joined the Council in 1983 when she won her seat at a by-election. In an interview she stated: “I first stood for the council and won my seat in 1983 at a by-election – I felt I could represent my community as I was aware of all the issues locally, being heavily involved in local charity work.”
She said that better pay for councillors would be a priority, as it could help towards childcare. She claimed her proudest achievement was to be elected as convenor. Andrea Manson and Shetland Council have both been asked to comment.
Get more Daily Record exclusives by signing up for free to Google’s preferred sources. Click HERE