JAG has agreed with HM Revenue and Customs (HMRC) to pay an upfront deposit of £190,000 to continue making monthly VAT payments of £150,000.
In June, VAT inspectors were worried by JAG’s losses and fragile financial state and told the retailer it would have to pay a deposit of £1.6 million in case the company, which went through a prepack administration process in February, ran into further problems. JAG refused.
It was subsequently requested to pay a deposit of £600,000 – four months payments in advance in order to continue to make monthly repayments of £150,000. It also turned down this offer. Boss John George said JAG’s financial situation precluded it putting down such a sum.
But HMRC has since backed down. George said: “We’re delighted this has been resolved and we now have a good figure to work with – £190,000 is much better than £1.6 million. We can now put this worry behind us and move on.”