How could that have happened? How could HMRC have reached the point where it cannot chase that much tax? How limited are resources is this is the case?
By Richard Murphy, founder of the Tax Justice Network
“A TEMPORARY employment agency has gone into liquidation owing HM Revenue & Customs (HMRC) £58 million in unpaid tax.
“Edinburgh-based Employ-E, a division of Legitas Group which is also in liquidation, is owned by lawyer David Allen, who is reported to own a golf course and mansion house in the Borders.
“Employ-E had about 60,000 low-paid temporary workers on its books, who it supplied to recruitment agencies throughout the UK.”
The real question here is, how could that have happened? How could HMRC have reached the point where it cannot chase that much tax? How limited are resources is this is the case?
There is also another question, which is, of course, where is the money? An agency should have been reimbursed all costs including tax. How could it lose that much money?
In the case of both questions surely HMRC should have been on top of this? If not I can only put it down to under-resourcing.
Left Foot Forward doesn't have the backing of big business or billionaires. We rely on the kind and generous support of ordinary people like you.
You can support hard-hitting journalism that holds the right to account, provides a forum for debate among progressives, and covers the stories the rest of the media ignore. Donate today.
71 Responses to “How can a company go bust owing £58 million in tax?”
LB
Legal-E does nicely too, getting £7.68 in fees
See the links already provided. That’s the weekly fee, and its an expense, so it comes off the gross income.
Haven’t you read the link provided yet?
Alec
Please stop. Conversing with someone as ffick as you makes me feel sore.
The article says that the 15,000 workers have been short-changed. It is generally accepted that to dodge tax, someone has to retain money they should have paid. It hasn’t happened here.
~alec
LB
The link I provided (and others too on this thread) states quite clearly.
15,000 employees a week.
It even has the charging structure.
http://www.legal-e.uk.com/ is there website, you can even go and check for yourself.
Perfectly legal, unless the directors have been not paying NI on the after expenses income.
Perfectly legal, if the expenses are legitimate. If not that’s 15,000 people in court. I presume you want the workers sued for dodging tax in those cases?
Lets see, court time, jail time. Legal aid if there is any, for a few quid a week? Plus the criminal records for 15,000 people. That’s what you’re advocating.
So lets turn it around.
Are people claiming illegitimate expenses? Duck ponds, or submitting the same invoice twice. Its what my MP did. Simon Hughes if you want to know.
LB
So if they haven’t dodged tax, that means you’re saying the expenses are legitimate.
OK, do you pay tax and NI before or after the expenses have been paid?
Alec
I said something entirely different. Go back and read what I wrote.
Do you not think that the conversation would advance better if you just for once told the truth?
~alec