Lycamobile, a telecommunications company, known for its contributions to the Conservative party, is facing a winding-up petition from HM Revenue and Customs over a long-standing VAT dispute. The company has generated significant revenue but is currently loss-making. Its accounts have been filed late and have raised concerns about transparency.
The dispute with HMRC involves £51m, according to a tax tribunal, with Lycamobile estimating a potential cost of £99m. The winding-up petition could result in assets being forcibly sold if the company is unable to pay its debts. Identical petitions were also issued against sister companies owned by Lycamobile’s founder, Allirajah Subaskaran.
Lycamobile has a history of late filings and incomplete audits, with KPMG previously unable to account for £134m in assets due to an intricate corporate structure. The most recent auditor, PKF Littlejohn, expressed concerns about the lack of appropriate audit evidence to provide an opinion on the company’s financial accounts.
In the face of financial challenges, Lycamobile also experienced a malware attack that affected customer services. The company reported a £24m loss in the year up to December 2022, following an £8m profit the previous year.
The Guardian has reached out to Lycamobile for comment, while HMRC cited taxpayer confidentiality rules for not providing further information. The company’s connections to political donations and past controversies, including cash deposits at the Post Office, have raised additional scrutiny.
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