MCE Insurance, the top-three UK specialist motorcycle broker and British SuperBikes championship headline sponsor, is fighting a legal battle with HM Revenue & Customs over alleged tax liabilities, BDN financial editor Roger Willis reports.
This dispute was revealed in MCE’s annual results statement to 31 May, 2016, which was filed at Companies House on 24 February, 2017. The document said HMRC had issued advanced payment notices for unpaid taxes due in relation to an employee benefit trust totalling £10.2m. However, MCE directors didn’t accept they owed these amounts, so the company had formally appealed and is awaiting the outcome of a judicial review.
During the 12 months in question, MCE revenue rose by 9.7% to £29.47m. Turnover from commission and fees fell by 18.2% to £18.88m but the shortfall was more than covered by other income streams. Net profit was £931,852.