Kent MP Helen Whately helping workers at Maidstone Roadchef service station on the M20 who are still waiting for payout
06:00, 07 September 2020
An MP has said she'll do "whatever she can to find a way forward" as at least 75 employees at the Maidstone Roadchef service station are still waiting to receive a significant payout after more than 30 years.
The end of a scandal dating back to the 1980s is nearly in sight, but the workers need the government and HMRC to make the payments exempt from tax, to avoid the long-suffering employees receiving only a meagre amount.
Employees at the M20 stop-off are just some of the 4,000 left in limbo across the country.
In 1986, 20% of the catering firm's shares were allocated to staff by boss Patrick Gee, in a forerunner to the scheme now run by John Lewis.
However, after Gee's death, the company was left in the hands of Timothy Ingram Hill, who transferred the shares into a separate trust and sold the company to a Japanese bank in 1998 for £75m.
In 2003, legislation was passed to make schemes such as this exempt from tax but the trust had already been emptied and so was ineligible.
Since 2005, the Roadchef Employees Benefits Trust Ltd (REBLT) has been fighting to recover the money and lobbying MPs to champion the cause.
A lengthy legal battle led to a High Court settlement in 2014, but it was discovered that millions of pounds relating to the scheme had been paid in tax by Mr Ingram Hill.
He was ruled to have breached his fiduciary duty to Roadchef employees, but there was no suggestion he acted illegally. He appealed elements of the judge's decision, and an out-of-court settlement was reached.
Following pressure from campaigners and politicians, HMRC paid the money back to the employee trust in 2018, leading many to believe a payout was finally in sight.
But, campaigners argue that a long-running dispute with HMRC over taxing the payments has led to delays.
REBLT say if the government makes a simple change to legislation, the tax-free payments would be unlocked.
"People who signed up to Roadchef's scheme in good faith feel they've been badly let down..."
Helen Whately, Conservative MP for Faversham and Mid Kent, who has constituents waiting for the money, described the situation as "hugely frustrating."
She said: "People who signed up to Roadchef’s scheme in good faith feel they’ve been badly let down. I’ve asked the treasury for an update on what’s being done to help people affected, including those at the Roadchef at Maidstone Services.
"Ministers have assured me that HMRC are working to find a resolution. I’ll keep a close eye on the situation and do whatever I can to help find a way forward.
"People have been waiting years for this to be resolved. I want to see a solution here as quickly as possible, so that people can move on with their lives.”
Christopher Smith, chairman of REBTL said: “The hardworking people at Maidstone Roadchef service station are among thousands of low paid people who have waited far too long to get their dues, some dying without ever receiving a penny.
"We have had some very supportive MPs but many others could have done much more. I would still urge all Roadchef beneficiaries to ask their MPs to contact HMRC, to raise this scandal on the floor of the House of Commons and urge the government to change the law.
"MPs should also press for an inquiry by the Treasury Select Committee into HMRC’s conduct.
"HMRC has previously said on the record that no tax should be payable on this scheme and continually contradicted their own advice with dither and delay.
“The Maidstone employees have suffered as a result of some utterly unscrupulous behaviour. Mr Ingram Hill’s actions have caused misery for thousands of Roadchef employees, a misery continued by HMRC.
"The revenue need to do the right thing and bring an end to this mess, allowing us to make tax-free distribution to the beneficiaries. An inquiry is urgent to ensure lessons can be learned from this and a resolution brought before more hardworking people die without what’s rightfully owed.”
An HMRC spokesperson said: "Due to taxpayer confidentiality, we cannot comment on the specifics of the case, but are working to bring it to a conclusion."
