J Adams goes under citing EU VAT debacle
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ANOTHER UK haulier has been forced to close its doors after an EU state failed to Pay almost €150,000 (2125,200) it owes in VAT rebates for fuel purchased abroad.
Northamptonshire operator J Adams and Son (Warehousing) closed its doors earlier this month with administrators from Elwell Watchorn Saxton appointed.
Barry Adams, the Wellingborough firm's FD, says it is owed around €150,000 from Belgium in VAT rebates dating back to the beginning of 2010.
Adams says it received a payment from Belgium in July, but that was for 04 of 2009.
He also cites the increase in the price of fuel 4-ithe UK over the past 24 to 36 months as a factor that prompted the firm to close down.
He adds: "The industry is very volatile and the cash injection required [to continue trading] would have been far outweighed by the increasing costs.
"The way road haulage is viewed by customers and the way fuel is going up makes it unsustainable for anybody."
About 30 staff have been made redundant as a result of the firm's closure.
Last month, Kent haulier Time Critical International blamed a delayed €500,000 VAT refund for its closure.