HMRC disagreement killed off struggling Scotsys

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HMRC disagreement killed off struggling Scotsys

Microscope contributor

Her Majesty's Revenue and Customs pulled the plug on Scotsys after disagreeing with a payment plan the reseller put forward to cover tax bills, sources have claimed.

As revealed first by MicroScope last week, the Lanarkshire-based reseller Remco, which trades at Scotsys was placed into the hands of PricewaterhouseCoopers (PWC), as were parent company Adventi Group and its other subsidiary Integral Arm Ltd.

The trading environment for the company was tough last year, as it was the rest of the channel, but it has emerged that Remco - acquired by Adventi Group in 2005 - had mounting debts with HMRC for VAT and PAYE tax.

The board had tried to reach an agreement with HMRC by proposing a phased payment plan which was rejected, say sources close to the situation.

"HMRC forced Remco into administration and then the directors of Adventi Group decided to place that business into the hands of PWC," said a source.

In a statement sent to MicroScope, Graham Frost, joint administrator and director at PWC, said the businesses faced terminal liquidity issues and management had been working on a restructuring programme

"Unfortunately, the board have since reluctantly concluded that this path is no longer feasible," he said.

Half of the 44-strong workforce has been laid off as PWC reviews operations and seeks to "create a new cost and funding structure"

"We believe this presents an opportunity for an industry player to acquire a business that is strategically important both in terms of technological expertise and creativity and we are encouraged by the level of interest already shown," said Frost.

HMRC refused to comment on individual companies.

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