Employ E appoints liquidators as HMRC makes £58m claim
21 June 2013
Employment agency Employ E has appointed liquidators after HMRC submitted a claim of £58m in unpaid tax and penalties. In a statement, insolvency firm Henderson Loggie says the claim was confirmed this week.
Fri, 21 Jun 2013
Employment agency Employ E has appointed liquidators after HMRC submitted a claim of £58m in unpaid tax and penalties. In a statement, insolvency firm Henderson Loggie says the claim was confirmed this week.
“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,” says Claire Middlebrook, from Henderson Loggie.
Prior to its collapse, Employ E was itself owed more than £22m after outsourced payroll company Legitas Group went bust in May. Employ-E had up to 60,000 staff on its books, who were supplied as temporary workers to recruitment agencies.
According to Companies House, David Allen, who also ran Legitas Group is the sole director of Employ E. Employ E was previously known as Legal E.
Prior to its collapse in May, Legitas Group, which offered an outsourced payroll service for agencies and temporary workers, based on a pay-day-by-pay-day model switched all its temps to PAYE after it “identified concerns” following an HMRC audit.
Payday-by-payday tax relief models, where recruiters make savings on employers’ National Insurance and holiday pay have attracted much criticism for exploiting vulnerable workers, and have come under increased scrutiny from HMRC.
Last year, amid rising concerns about the use of travel and subsistence schemes, payroll and accounting services firm Backoffice withdrew its umbrella product Pay Day, operated through its subsidiary Paymaster. This followed an earlier decision by a judge not to grant a licence to one company, FS Commercial, proposing such a pay-day scheme.
Employment agency Employ E has appointed liquidators after HMRC submitted a claim of £58m in unpaid tax and penalties. In a statement, insolvency firm Henderson Loggie says the claim was confirmed this week.
“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,” says Claire Middlebrook, from Henderson Loggie.
Prior to its collapse, Employ E was itself owed more than £22m after outsourced payroll company Legitas Group went bust in May. Employ-E had up to 60,000 staff on its books, who were supplied as temporary workers to recruitment agencies.
According to Companies House, David Allen, who also ran Legitas Group is the sole director of Employ E. Employ E was previously known as Legal E.
Prior to its collapse in May, Legitas Group, which offered an outsourced payroll service for agencies and temporary workers, based on a pay-day-by-pay-day model switched all its temps to PAYE after it “identified concerns” following an HMRC audit.
Payday-by-payday tax relief models, where recruiters make savings on employers’ National Insurance and holiday pay have attracted much criticism for exploiting vulnerable workers, and have come under increased scrutiny from HMRC.
Last year, amid rising concerns about the use of travel and subsistence schemes, payroll and accounting services firm Backoffice withdrew its umbrella product Pay Day, operated through its subsidiary Paymaster. This followed an earlier decision by a judge not to grant a licence to one company, FS Commercial, proposing such a pay-day scheme.
