Lloyd’s broker Swinglehurst has had its accounts frozen after running into trouble with HM Revenue and Customs.

Chairman, John Swinglehurst told the Evening Standard: “We have been having some ongoing issues with HMRC. We have finalised the outstanding amounts with them, and are near the stage of resolving it."

Swinglehurst declined to describe the nature of the dispute or the amounts involved. "I think that's private," he said.

Swinglehurst confirmed all 35 staff remain unpaid but he is hopeful all staff will be paid in this week.

Swinghurst denied industry rumours the tax issue has affected client’s insurance. "The premiums are ring fenced," he said.

He said the FSA is aware of the issue but is allowing it to continue trading. "We have explained that we have substantial funds due to us. They will shortly be transmitted."

Swinglehurst said the broker was upfront about the company's problems, adding: "It doesn't help us for this to come out but misfortune is always news".

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