// Iceland launches attack against HMRC for its investigation over a savings scheme amid Covid-19

// Iceland exec chair Malcolm Walker said he is “totally shocked and amazed” that HMRC is chasing the business

Iceland has reportedly slammed HMRC for “harassing” the business over its Christmas Club employee savings scheme during the coronavirus crisis.

The frozen food retailer’s boss Malcolm Walker said he is “totally shocked and amazed” that the government department is chasing Iceland for more information on the scheme “under the current conditions,” The Times reported.

The scheme was intended to allow staff to save money for Christmas.

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HMRC accused Iceland of breaking minimum wage rules around the savings scheme for its staff.

Iceland employees can choose to have money deducted from their pay packets, which is saved in a dedicated account and typically withdrawn at Christmas.

HMRC has argued that, as a result, their pay technically does not meet the minimum wage regulations.

Walker also said Iceland had 3000 employees off sick on full pay, a further 1200 vulnerable staff taking 12 weeks leave on sick pay and it was facing £20 million of additional costs from dealing with the coronavirus.

The Iceland founder said that sales had halved at 200 of its stores.

However, total sales are thought to have increased by double-digits as shoppers turned to frozen foods.

Meanwhile, HMRC also said Iceland broke further rules by telling store staff to wear “sensible shoes” because employees should be compensated for any footwear purchased for work.

As a result of the allegations, Iceland may have to pay £21 million, and it has already spent more than £300,000 in legal fees defending its Christmas Club and footwear policy against HMRC’s investigations.

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