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Collapsed Dundee firm McGill was facing legal action over tax bill

Collapsed Dundee construction services firm McGill and Co was about to be sued by HMRC over an unpaid tax bill.

Nearly 400 people lost their jobs when the Dundee firm was plunged into administration on February 1.

Workers leaving the Apex Hotel after being told McGill was going into administration.
McGill staff gathered at the Apex Hotel to learn the company had collapsed into administration.

Scottish Enterprise, which had been criticised for refusing to issue a crisis loan to McGill, released hundreds of documents online last night in response to Freedom of Information requests.

WATCH: ‘Why couldn’t McGill get just £2 million to save 450 jobs?’ – Tense exchanges in Holyrood as Jenny Marra and Jamie Hepburn clash on firm’s demise

FULL STATEMENT: Administrator confirms 374 immediate job losses at McGill

They revealed that up until January 17 Scottish Enterprise was still favourably considering a loan.

But KPMG, who were appointed administrators of the company on February 1 and had been advising Scottish Enterprise, said it would take too long to carry out due diligence on the company’s turnaround plan and the plea was rejected on January 30. the same day HMRC said it would take legal action to recover PAYE and National Insurance taxes owed to it.

Scottish Government accused of ‘dereliction of duty’ over McGill collapse amid claims jobs could have been saved

Forty-eight hours later, McGill’s staff were summoned to a meeting at the Apex Hotel in Dundee where they were told they were losing their jobs.

Earlier that week McGill’s bank Santander withdrew McGill’s overdraft facility because no loan from Scottish Enterprise had been agreed.

An update provided to business minister Jamie Hepburn on January 30 stated: “Scottish Government colleagues have been advised today that HMRC has written to

McGill to advise that, while its seven day period for submitting a payment proposal does not expire until tomorrow (January 31), no proposals have been received to date and HMRC will now therefore continue legal actions.”

McGill administration: Leaked email shows company founder ‘not surprised’ Scottish Enterprise refused loan

An HMRC spokesman said he could not comment on individual businesses.

The Scottish Enterprise documents can be viewed here.

It comes as Scottish Labour leader Richard Leonard spoke to The Courier and accused the Scottish Government of a “dereliction of duty” over the collapse of McGill.

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