Agency goes bust owing £58m in tax

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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.

Claire Middlebrook, an insolvency partner with accountancy firm Henderson Loggie, was appointed as liquidator at a creditors meeting yesterday.

Middlebrook said: “My first step is to carry out an investigation into the position and workings of Employ-E with the aim of realising any assets it has for the benefit of the creditors.”

Henderson Loggie said that all staff were paid prior to its appointment.

HMRC has submitted a claim to the liquidator for £58m for “unpaid tax, and penalties deriving therefrom”.