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Arran Aromatics in bid for cash to fight off the taxman

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Published Date: 31 January 2009
By PETER RANSCOMBE
BUSINESS REPORTER
ARRAN Aromatics was last night searching for fresh investment to guarantee its long-term future after facing a court petition from HM Revenue & Customs (HMRC) over a tax bill.
The family-run business – which makes a range of up-market soaps and candles – had faced a petition at Kilmarnock Sheriff Court from HMRC, calling for the company to be wound-up.

But it is understood that the company has been granted a two-week extension by HMRC to give it time to pay the bill, which is reportedly £180,000.

Now the firm is seeking to secure new investment, with help from government agencies.

Arran Aromatics, which was formed in 1988, employs 95 staff, including 66 on the island.

The company is believed to have been badly hit by the loss of a £75,000-a-month order from a hotel customer. However, its business was boosted last April, when it signed distribution deals with two leading American fashion chains.

The deals with Fred Segal – a boutique popular with celebrities including Kate Moss – and American Rag, a luxury chain with stores in San Francisco and Los Angeles, are part of a wider expansion strategy.

The company is also believed to have recently secured major contracts with British Airways, P&O cruise ships and , the shopping channel QVC.

Arran Aromatics yesterday did not return calls.

But Kenneth Gibson, MSP for the Cunninghame North constituency, which includes the island of Arran, told The Scotsman: "I believe the worst is now past but the company is not yet out of the woods."

He said Alastair Rennick, Arran Aromatic's managing director, was working with Jim Mather, the enterprise minister, and UK and Scottish Government agencies to assist the company.

Gibson added: "The current window of opportunity gives the company a chance to attract additional new investment and ensure long-term survival and growth. Once short-term difficulties have been addressed, the new contracts recently secured should ensure Arran Aromatics has a stable and prosperous future."

Arran Aromatics was founded by Iain and Janet Russell, with their sons Andrew and Duncan, at Home Farm on the island.

The company now produces a range of about 250 products across six ranges, including shower gels, bath oils, hand cream and lip balms.

A range of 147 candles is also made on the island.

Arran Aromatics' factory and shop are a well-known tourist attraction on the island.

A spokesman for HMRC said he could not comment on specific cases.

Figures released earlier this month by HMRC showed that 1,125 businesses had been able to delay paying a total of more than £17 million of tax after contacting HMRC's business payment support service.

The "Time To Pay" service – which was launched by Chancellor Alistair Darling in his Pre-Budget Report – gives businesses the chance to negotiate with HMRC over payment timetables for pay-as-you-earn income tax, national insurance contributions and value added tax.


Page 1 of 1

  • Last Updated: 30 January 2009 8:57 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Billiam Wallace,

31/01/2009 01:44:49
The British pay far too much tax. Everything we do is taxed, often by stealth. If you make something by the sweat of your brow, involving no-one else, there is the tax man with his hand out. Try to make your own bio-fuel to be eco friendly and save money, there they are again. In one of the most highly taxed countries in the world, is it any wonder that companies are struggling, especially in a recession. Do such companies get any real help or just extensions to pay later? All that tax and Strangely Brown and his Darling still can't balance the books. Makes my blood boil at the injustice to these people struggling to make their way and build a business.
2

sahsa,

edinburgh 31/01/2009 08:24:04
I have purchased their items from qvc and they are really nice. Hope they carry on with their business.
3

Andy1,

31/01/2009 10:33:49
Gordon Ramsay is next. About to be put into admin.
4

The Strategist,

31/01/2009 11:01:11
£180k !! Get Fred Goodwin to pay it.
5

Churchill W.,

31/01/2009 19:36:14
The Strategist # 4

Get the people at Arran Aromatics to pay it.
When they take the cash for their products it includes VAT. If they do not render that sum to HMRC that sum has to be substituted by other taxpayers, like you. Nobody likes paying taxes, but, most people like that services that they provide and the sums of cash that they inject into communities throughout the UK.
6

Churchill W.,

31/01/2009 19:37:29
Here's a nice anniversary for Scottish people:

http://news.bbc.co.uk/2/hi/uk_news/scotland/glasgow_and_west/7859192.stm
7

observer9,

04/02/2009 18:23:46
Scottish Enterprise threw £40 million pounds away on Inverness Medical, not one penny returned to the taxpayer.

& ITI,words fail me. Where do they churn these "genuises", exceptional candidates one and all have whizzed away furthe rmillions on their salaries and pensions alone and have produced borderline zilch in terms of ROI yet no-one is stepping in to assist a reknowned company who have hit a blip.

Whilst the taxpayer, HMRC employees included are being squeezed to pay for the manmade crisis that the banks caused in the first place and to make it more painful they, the root cause are profiting from it.

95 jobs may hit the dole because of a £180,000 bill. Can anyone from HMRC or the Job centre tell us all how much this will cost in benefits, perhaps long term benefits to these workers?

Say for example each employee gets £60 quid a week dole ( dole only, no other benefits) 60 x 95 x 52 (weeks) = £296,400. Oh yeah, this makes perfect sense, say they are on the dole for 3 years ( as this recession is here for quite a while) that takes it to £889,200 pounds.

Brilliant decision, brilliant decision.

Note to Churchill
Ever thought that Arran Aromatics customer hasn't paid for the goods as they may struggling as well. Have you ever run a company?

 

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