"Premier Group Recruitment went into administration this month with debts of 2.9m including 647,000 owed to HM Revenue and Customs (HMRC), which had commenced enforcement proceedings against the company. The recruiter's assets were acquired three days later by a new company, PGGBR Ltd, founded by Andrew Woosnam, Premier's 99% shareholder. Woosnam has an outstanding director's loan of 1.2m from Premier"
"Meanwhile, Premier's 2022 and 2023 annual reports showed a total of 1.95m in dividends were paid to the company's shareholders. The deal appears to be the latest example of what is known as phoenixism when companies are liquidated and directors are able to rise from the ashes with a new entity, free of debts. HMRC estimates the practice, which is generally legal, cost the exchequer about 22% of the 3.8bn of tax losses reported in 2022 to 2023."
An insolvent UK recruitment firm entered administration with £2.9m of debts, including £647,000 owed to HMRC, and had its assets acquired for an initial £10,000 by a new company founded by the former 99% shareholder. The former owner received about £1.95m in dividends across 2022–2023 and holds a director's loan of £1.2m from the business that increased after the 2024 year end when the company reported doubt about meeting obligations. The transaction fits the pattern of phoenixism, which HMRC says accounts for a significant portion of reported tax losses.
Read at www.theguardian.com
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