THE company behind a controversial anaerobic digester near Haddington has been told it will still have to pay a six-figure penalty charge.

HM Revenue & Customs (HMRC) had named Bangley Quarry Biogas Ltd on a list of deliberate tax defaulters over an alleged unpaid tax bill of £324,892.

Bangley Quarry Biogas Ltd has disputed the allegation, which would see it facing a £187,000 penalty charge.

READ MORE: Bangley Quarry Biogas Ltd named on list of deliberate tax defaulters

The company claimed that it was not actually trading at the time relating to the bill – between July 2018 and December 2019 – and notified HMRC of what it perceived to be a mistake.

A spokesman for Bangley Quarry Biogas got in touch with the Courier and called for “better communication” by HMRC in future.

He claimed that HMRC had removed the penalty, stating: “We are relieved this matter has finally been resolved and better communication could have avoided this issue from getting that far.

“We worked closely with HMRC to resolve the issue and get the penalty removed as soon as possible. The company was dormant (not trading) at the time and therefore no tax was due.”

However, a spokesperson for HMRC disputed this, telling the Courier: “The company’s claims are wrong.

“All taxpayers named as deliberate defaulters on March 23 were included in line with the legislation. All penalties remain final.”

The anaerobic digestion (AD) plant to the north of Haddington is currently under construction and due to be completed next year.

When operational, it will produce 1,100m3/hr biomethane, more than enough gas to supply the entire town.

The company is investing more than £25 million in the project over the next two years.

East Lothian’s councillors were split when the proposals were presented to the council planning committee in 2018, with a casting vote from Councillor Norman Hampshire, planning convenor, required to break a tie and give the plant approval.