This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2015/apr/08/rover-workers-payout-hopes-overpaid-vat-claim-pwc-government

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
MG Rover workers axed in carmaker's collapse could get VAT claim payout MG Rover workers axed in carmaker's collapse could get VAT claim payout
(about 2 hours later)
Former MG Rover workers could be in line for a payout, 10 years since the carmaker’s collapse, after administrators said they were trying to recover £56m in overpaid VAT.Former MG Rover workers could be in line for a payout, 10 years since the carmaker’s collapse, after administrators said they were trying to recover £56m in overpaid VAT.
Ex-employees have been given some hope they will receive an estimated £300 each if PriceWaterhouseCoopers can successfully claim the cash from the government. It said VAT was incorrectly charged on vehicle sales from the early 1970s to the 1990s. Ex-employees have been given some hope they will receive an estimated £300 each if PriceWaterhouseCoopers can successfully claim the cash from the government. It said VAT was incorrectly charged on vehicle sales from the early 1970s to the 90s.
A decade ago this week, production was halted at MG Rover’s Longbridge plant, and less than a year later the company went into liquidation with the loss of 6,000 jobs. The collapse of the last British-owned volume carmaker came about after it failed to secure a rescue partnership with China’s state-owned Shanghai Automotive Industry Corporation. A decade ago this week, production was halted at MG Rover’s Longbridge plant, and less than a year later the company went into liquidation with the loss of 6,000 jobs.
The liquidation has so far realised £165m, most of which was in the early years after the collapse, partly from the disposal of vehicles and the sale of assets. Of this, £80m has been paid out to creditors with the rest used for rent, payroll, professional fees and finishing off cars and paying preferential creditors, according to Rob Hunt from PwC, one of the original administrators. The collapse of the last British-owned volume carmaker came about after it failed to secure a rescue partnership with China’s state-owned Shanghai Automotive Industry Corporation.
The liquidation has so far realised £165m, most of which was in the early years after the collapse, partly from the disposal of vehicles and the sale of assets.
Of this, £80m has been paid out to creditors with the rest used for rent, payroll, professional fees and finishing off cars and paying preferential creditors, according to Rob Hunt from PwC, one of the original administrators.
Related: The Phoenix Four turned Rover workers' dreams to ashes | Oliver ThomasRelated: The Phoenix Four turned Rover workers' dreams to ashes | Oliver Thomas
The claim for £56m comes as a result of VAT which was overpaid during a period when the company had a number of different owners. Hunt said: “A number of other vehicle manufacturers and leasing companies have made similar and successful claims.” The claim for £56m comes as a result of VAT which was overpaid during a period when the company had a number of different owners.
Hunt said: “A number of other vehicle manufacturers and leasing companies have made similar and successful claims.”
A VAT tribunal found in favour of MG Rover and that decision is now being challenged by BMW, a former owner, and HMRC, he said. The appeal is expected to take place in July 2016. If successful, the money could be shared out among creditors including former workers.A VAT tribunal found in favour of MG Rover and that decision is now being challenged by BMW, a former owner, and HMRC, he said. The appeal is expected to take place in July 2016. If successful, the money could be shared out among creditors including former workers.
A statement from BMW said: “We have made a claim because HMRC’s published statements indicate we are the correct claimant. However, it is for the courts to decide if we are the right party to reclaim the VAT in question and BMW Group will abide by their ultimate decision.”A statement from BMW said: “We have made a claim because HMRC’s published statements indicate we are the correct claimant. However, it is for the courts to decide if we are the right party to reclaim the VAT in question and BMW Group will abide by their ultimate decision.”
Hunt said a payout would increase the amount of money returned to creditors from just under 10p on the pound to between 15p and 16p. He said he could see the aftermath of the collapse of MG Rover running for another two or three years “at least”.Hunt said a payout would increase the amount of money returned to creditors from just under 10p on the pound to between 15p and 16p. He said he could see the aftermath of the collapse of MG Rover running for another two or three years “at least”.
The company was bought in 2000 for £10 by four local businessmen – John Towers, Nick Stephenson, John Edwards and Peter Beale – who, operating as Phoenix Venture Holdings, were dubbed the “Phoenix Four”. The company was bought in 2000 for £10 by four local businessmen – John Towers, Nick Stephenson, John Edwards and Peter Beale – who, operating as Phoenix Venture Holdings, were dubbed the Phoenix Four.
Yet it failed to find an international partner to secure its long-term future and eventually collapsed in 2005. The Phoenix Four were later disqualified from being company directors for varying periods of time.Yet it failed to find an international partner to secure its long-term future and eventually collapsed in 2005. The Phoenix Four were later disqualified from being company directors for varying periods of time.
The collapse of MG Rover had huge repercussions in the surrounding area with unemployment in Longbridge doubling in the five years that followed.The collapse of MG Rover had huge repercussions in the surrounding area with unemployment in Longbridge doubling in the five years that followed.