Resolution Reached for Ex-Roadchef Workers

In the 1980's the Roadchef Employee Benefits Trust (REBT) was the first tax exempt all-employee share ownership scheme of its kind in the UK to be approved by the then UK Government and HMRC. However, under legislation it was missed from the list of all-employee share ownership schemes that benefit from tax breaks because a former CEO of Roadchef paid £10 million to HMRC on the proceeds of sale from shares that he obtained in breach of trust.

A High Court judgement in 2014 found the payment to HMRC was not valid due to the former CEO's misappropriation. The Trustees subsequently recovered compensation from HMRC and the former CEO, but were prevented from distributing this money to beneficiaries because HMRC were considering what taxes to charge the Trust and its beneficiaries. Taxes on money that HMRC should never have received in the first place.

Over the years, local MP Martyn Day was one of many to lobby the UK Government on behalf of the Roadchef Employee Benefits Trust when HMRC wrongly deprived payments being made to beneficiaries.

Commenting, Mr Day said: “I was delighted to recently learn that the financial injustice of the long-standing dispute between HMRC and the Roadchef Employee Benefits Trust has finally been resolved.

“Well done to the trustees and others who have continued to fight long and hard for justice. It is, however, sad that some beneficiaries have died before seeing justice done.”