Legitas’s HMRC debts ‘significantly higher’ than £40k says liquidator

The liquidator of payroll company Legitas Group that went bust in May owing £22m says she expects to see the amount owed to HMRC “significantly higher” than the £40k advised to her by the directors.
Wed, 12 Jun 2013The liquidator of payroll company Legitas Group that went bust in May owing £22m says she expects to see the amount owed to HMRC “significantly higher” than the £40k advised to her by the directors.

Claire Middleton, insolvency partner at accountants Henderson Logie, tells Recruiter: “We note the directors’ statement of affairs confirms a small debt due to HMRC; however, it is our opinion that this debt will be significantly higher.”

Middleton adds: “The director [of Legitas Group] David Allen has commenced the process of placing Employ-e Ltd into creditors voluntary liquidation and the creditors will be notified shortly.

“I am also not aware of any other insolvency practitioner being appointed over the other companies.
 
“In respect of the debt to HMRC, as part of our investigation we will establish what debts are outstanding to HMRC and to confirm the full creditors position of Legitas Group Ltd.”

As recruiter.co.uk reported in April, Legitas, which offered an outsourced payroll service for agencies and temporary workers, switched all its temps to PAYE after it “identified concerns” following an HMRC audit.

Recruiter was unsuccessful in attempting to contact David Allen through a number of companies previously stated on their websites as Legitas Group companies.

An HMRC spokesperson tells Recruiter that the organisation is unable to comment.

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