Fife firm on the brink due to row with HMRC.

SUPPORT: Fife MP hits out at ‘glaring incompetence’ of department

A Fife construction company has been pushed to the brink of collapse as HMRC delays previously agreed furlough payments, it has been claimed.

Kirkcaldy-based RG Construction, a civil engineering firm with a workforce of 16, had chosen to furlough staff in April after HMRC confirmed to the company and its accountants that a furlough application was successful, it was said.

After administrative errors were said to have led to delays in payments from the tax office, company bosses approached Kirkcaldy and Cowdenbeath MP Neale Hanvey for support, and a formal complaint from him led to an assurance of a substantive response by July 15.

But in a turn of events that leaves RG Construction £64,800 out of pocket, HMRC’s legal services team is said to have failed to provide a full response and instead referred the case to another department.

RG Construction has been covering employees’ salaries out of its own coffers, but bosses now say that the company may have to fold unless HMRC make the furlough payments this week.

RG Construction owner Ron Greig said: “The impact on our business is silly due to the lack of clarity from HMRC.

“We were told that there is a reference number and that the claim was passed. At that time, we were due around £40k.”

He added: “Due to being messed about by HMRC, our cash flow got hammered and my life has been hell.

“The bounce back loan thankfully came in and that bridged what had already gone on wages. But we hit bottom with our overdraft, and we have now been turned down for a loan.”

Mr Hanvey said he was furious at the “glaring incompetence” of HMRC.

He added: “This is not the only issue with the furlough scheme that I’ve seen come through the office.”

An HMRC spokesperson said it did not comment on “identifiable taxpayers or businesses” but did say the Coronavirus Job Retention Scheme has been delivered at unprecedented pace.

They added: “Our guidance is clear on the requirements for the scheme, which include notifying HMRC on an RTI submission on or before March 19 2020. This must relate to a payment of earnings in the 19-20 tax year.”

They said if an employer believes there have been mistakes or unreasonable delays with their application caused by HMRC they should follow the complaints process on gov.uk

“Due to being messed about by HMRC, our cash flow got hammered and my life has been hell. RON GREIG