[Scotland] Payroll tax scandal leaves hospitality staff broke

[Scotland] Payroll tax scandal leaves hospitality staff broke
10 Feb 2021

Hundreds of Scottish hospitality staff have been left without an income as a result of the liquidation of external firms, which owe large sums to HMRC.

Union leaders and politicians are demanding a full probe into how the collapse of payroll outsourcing companies has led to workers being denied access to furlough payments.

Glasgow bar and restaurant owner Alan Tomkins and business partner Billy McAneney used firms that filed credits to the tax accounts of individual employees and subsequently collapsed without passing along the cash to HMRC. This led to the staff being ineligible for furlough payments because the tax had not been paid.

Daily Record reporting revealed that HMRC’s leading officer - permanent secretary Jim Harra - has been looking into the matter following urgent communications by MPs and MSPs, acting on behalf of stricken workers.

MPs Alison Thewliss, Stewart MacDonald and Chris Stevens, along with MSP Ruth Davidson, have all been in talks with workers who have been denied even minimum wage as a result of the debacle.

Additionally, union bosses fear that the troubles of these staff are only the tip of the iceberg. There are growing concerns that thousands of people could be affected by the widespread collapse of outsourcing firms, many of which are suspected of running fraudulent rackets.

On February 7 Bryan Simpson - ­industrial organiser of the Unite union - called for a full HMRC inquiry and special consideration by the ­Government to be given to workers affected by the fall-out. Daily Record has the full story.

Hundreds of Scottish hospitality staff have been left without an income as a result of the liquidation of external firms, which owe large sums to HMRC.

Union leaders and politicians are demanding a full probe into how the collapse of payroll outsourcing companies has led to workers being denied access to furlough payments.

Glasgow bar and restaurant owner Alan Tomkins and business partner Billy McAneney used firms that filed credits to the tax accounts of individual employees and subsequently collapsed without passing along the cash to HMRC. This led to the staff being ineligible for furlough payments because the tax had not been paid.

Daily Record reporting revealed that HMRC’s leading officer - permanent secretary Jim Harra - has been looking into the matter following urgent communications by MPs and MSPs, acting on behalf of stricken workers.

MPs Alison Thewliss, Stewart MacDonald and Chris Stevens, along with MSP Ruth Davidson, have all been in talks with workers who have been denied even minimum wage as a result of the debacle.

Additionally, union bosses fear that the troubles of these staff are only the tip of the iceberg. There are growing concerns that thousands of people could be affected by the widespread collapse of outsourcing firms, many of which are suspected of running fraudulent rackets.

On February 7 Bryan Simpson - ­industrial organiser of the Unite union - called for a full HMRC inquiry and special consideration by the ­Government to be given to workers affected by the fall-out. Daily Record has the full story.

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