Phones 4U collapse costs HMRC £75m


Published: Tuesday 14th April 2015 by The News Editor

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Taxpayers will take a £75 million hit from the collapse of Phones 4U, with just a tiny fraction of the money they are owed set to be paid, administrators said today.

The sum had been due to HM Revenue and Customs (HMRC) for VAT and corporation tax.

But administrators PwC said HMRC was among unsecured creditors owed a total of £168 million who will now only receive 0.4p in the pound.

It means that the taxman will receive just £300,000 of the £75 million owed.

Meanwhile, more than 3,000 former employees are due to receive wages up to £800 plus holiday pay and pension contributions, totalling £3.4 million. Around 2,000 others kept their jobs when parts of the business were sold to rivals.

PwC said “significant progress” had been made reducing the arrears to former staff and the remainder was expected to be paid over the next six to nine months.

Bond holders owed £430 million are expected to receive between 20% and 24%.

PwC said it had recovered £27 million from stock sales, mainly Apple handsets from the main warehouse and stores worth £22.8 million.

It has also received £12.4 million from mobile network providers who owed commissions for connections.

PwC said it had yet to draw its fees saying it would “continue to focus on maximising the return for creditors”.

Published: Tuesday 14th April 2015 by The News Editor

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