Staff are left without pay at Lloyd's insurer

Swinglehurst, the Lloyds of London insurer run by the eponymous family that has been in the business since the 1930s, has run into trouble with the taxman.

The insurer, which does business in 30 countries, claims it is close to resolving issues that have led to the company accounts being frozen and staff salaries going unpaid.

Chairman John Swinglehurst told the Standard: "We have been having some ongoing issues with HMRC. We have finalised the ouststanding amounts with them, and are very nearly at 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.

The chairman is hopeful that staff will be paid in a day or two. The firm employs 35, most of them at the London headquarters in the City of London.

He firmly refutes rumours in the industry that the argument with the taxman has affected clients' insurance.

"Accounts are frozen when you have a petition against you, but clients are insured. The premiums are ring fenced," he explains.

He says the regulator has been kept informed of all developments and is happy for the firm to keep trading.

"The FSA is aware of it," he said. "We have explained that he have substantial funds due to us. They will shortly be transmitted."

Shares in the firm are held by the family.

Swinglehurst was upfront about the difficulties faced by the company, but is confident they will soon be resolved.

"It doesn't help us for this to come out," he said, "but misfortune is always news".

The firm, founded in 1999, does many classes of insurance including bloodstock, aviation and property.

The company website notes: "The Swinglehurst family has had a very long association with the insurance industry both in the UK and overseas stretching back to the 1930's and the present members of the family play a very active role in the day to day running of the Company."