Sub Club smashes fundraising target after furlough issue
AFUNDRAISER to save a much-loved nightclub beat its target within six hours and has now raised a massive £125,000. Sub Club, which is situated on Jamaica Street and opened its doors on April 1, 1987, says it has been denied access to the UK Government’s furlough scheme.
Its team applied for the scheme and continued to pay 31 staff members 80% of their wages in order to support them – but have failed to get the money amounting to £31,864 back.
The club says it has not met eligibility criteria for the scheme due to being one day late on a date applied retrospectively.
In a statement, the club said: “Following government guidance we applied for the Employee Furlough Scheme and continued to pay all 31 staff members 80% of their wages in order to minimise any disruption to individual financial circumstances, on the obvious presumption that the full amount would be reimbursed at the end of April once the scheme got up and running.
“Despite months of trying to address mistakes and errors on HMRC’s own system before the crisis began, we were eventually told we didn’t meet the eligibility criteria for the Job Retention Scheme, as our payroll information had been uploaded one day late, resulting in the refusal of our rebate claim of £31,864 which we had already paid to staff.
“It’s important to note that the cut-off date within the eligibility criteria was applied retrospectively, so this was not a mistake on our part, it was a failure on the HMRC system which has caused us to be barred from the scheme.
“Even worse, the furlough status of all 31 staff moving forward has been invalidated meaning we have had to place all our staff on unpaid leave. This includes our managers, our cleaner, our technical staff, our bar and door staff and our office admin team.
“Despite multiple appeals supplying copious evidence to support our case and representations at the highest level of government by our MP we still find ourselves in this perilous situation.”
A crowdfunding campaign was launched in a bid to raise £90,000 to keep the legendary dance music venue open.
After opening at 10am, the target was met at 4pm, with the figure at £120,000 later that day.
A spokesman for HMRC said it does not comment on individual businesses.
The spokesman added: “The Coronavirus Job Retention Scheme has been delivered at unprecedented pace and is protecting millions of jobs up and down the country.
“If an employer believes there have been mistakes or unreasonable delays with their application caused by HMRC, they should follow our complaints process which can be found on the gov.uk website.”
Glasgow SNP MP Alison Thewliss said she has been trying to help
Sub Club since May 11, with delays from HMRC.
She said: “I have been appalled by HMRC’s handling of complaints about the Job Retention Scheme.
“What’s more, it’s now becoming clear that their lack of flexibility and inability to exercise discretion is entirely deliberate, and as a result of instructions passed from HM Treasury.
“In these tumultuous times, businesses need HMRC to act quickly and be agile.
“What has happened has been the opposite, and it’s unacceptable that it’s HMRC and HM Treasury intransigence that will potentially push this business under.
“Perhaps most alarming of all is the fact that I raised this case personally with the Financial Secretary to the Treasury, Jesse Norman MP, on June 22 and haven’t had as much as an acknowledgement.”