Company Owes Big Money, Offers Staff Trip to Las Vegas

A company that recently closed, owing a lot of money to the tax office, has been bought by its previous owner. Now, they are planning a trip to Las Vegas for their staff. This has caused people to ask about the company's money choices.
By Newsroom | Business, Finance |

A recruitment firm that recently collapsed, owing HM Revenue and Customs (HMRC) a substantial sum, has been purchased by its former owner. Following the acquisition, the re-established company announced plans to reward its staff with an all-expenses-paid trip to Las Vegas. This move has raised questions about the firm's financial priorities and its handling of previous debts.

The company, Premier Group Recruitment, entered administration in September, reporting debts of £2.9 million. Of this amount, £647,000 was owed to HMRC. The tax authority had reportedly begun legal steps to recover the money. Following the administration, the business has been bought by its former owner, Andrew Woosnam.

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The core issue is the apparent disconnect between significant tax debt and the announcement of an extravagant staff reward program.

Background of Financial Distress and Acquisition

Premier Group Recruitment’s financial difficulties came to light in September. At that time, it was reported that the company owed HMRC £647,000. This debt was part of a larger sum of £2.9 million in total liabilities. The situation escalated to the point where HMRC initiated enforcement proceedings.

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Shortly after entering administration, the business was acquired by its previous owner, Andrew Woosnam. Details of the terms of this acquisition and the amount paid for the company are not publicly available.

A Lavish Reward Amidst Debt

Despite the recent financial collapse and significant outstanding tax obligations, the newly formed entity, operating under the same or a similar structure, has publicly advertised an end-of-year staff trip to Las Vegas. The company’s social media posts highlight the incentive:

Firm that went bust owing £650k to HMRC offers staff Las Vegas trip after being bought by ex-owner - 3

"END OF YEAR TRIP 2026. We’re going BIG … That means our consultants have the chance to hit their targets throughout the year and earn an ALL-EXPENSES-PAID trip to Viva Las Vegas.”

The company stated that the trip, covering flights and accommodation, is designed to reward staff for achieving results. Promotional material suggests it is a signal for individuals seeking to advance their careers in recruitment.

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Neither Andrew Woosnam nor Robert Keyes, identified as being involved with the company, have responded to requests from The Guardian for comments or for details regarding payments made to creditors since the administration deal.

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Broader Industry Concerns

This situation echoes broader concerns within the recruitment and payroll sector regarding financial responsibility and tax liabilities. Recent reports indicate a pattern of companies, particularly umbrella firms, facing administration with substantial debts owed to HMRC.

  • Honest Payroll, an umbrella firm serving recruitment agencies, went into administration owing HMRC "several millions of pounds" in Value Added Tax (VAT) and Pay As You Earn (PAYE) funds. Documents filed with Companies House revealed claims totalling nearly £2.5 million from HMRC.

  • The failure of such umbrella companies can create risks for recruitment agencies, potentially leaving them liable for unpaid employee taxes if the umbrella firm collapses.

  • There are also links between recruitment firms and tax avoidance schemes, where workers may face unexpected demands from HMRC for back taxes, even if recruiters were unaware of the schemes' nature.

Questions Regarding Debt Resolution

The current focus remains on how the new iteration of Premier Group Recruitment, under its former owner, plans to address the debts left by its predecessor.

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  • Was there a plan agreed with HMRC as part of the administration and subsequent acquisition to settle the outstanding £647,000?

  • How will the company ensure that its current operational practices are sustainable and compliant, especially given the recent history of financial distress?

  • What measures are being put in place to satisfy creditors, including HMRC, while also funding employee incentives?

The lack of public comment from the company’s leadership means these questions remain unanswered, creating a gap between the company's stated commitment to rewarding staff and the unresolved financial obligations.

Sources

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Frequently Asked Questions

Q: Why is this company in the news?
The company owed a lot of money, about £2.9 million, to the tax office. It closed but was then bought by its old owner.
Q: What is the company offering staff?
The company is planning to give its staff a free trip to Las Vegas if they meet their work goals.
Q: Is this okay when they owe money?
People are asking if it is right to offer a big trip when the company still owes a lot of money to the tax office and other people.
Q: What happens to the money owed?
It is not clear how the company will pay back the money it owes, especially to the tax office.