COLOURFUL furniture magnate Robert Morris has complained that the taxman is "going in with the knife" to firms with overdue tax, leaving his family business H Morris with rising levels of bad debts.

Mr Morris saw turnover at the Glasgow-based furniture maker fall 27.5% to £22.4 million in large part due to the sale of its office furniture operation, but still secured a 6.2% rise in pre-tax profit to £550,000 for the year to the end of January.

The results were depressed by the costs of an office move and Mr Morris noted that stuttering economic recovery has also weighed on profit margins.

But he complained that Her Majesty’s Revenue & Customs is making life difficult as well.

Mr Morris said: “I cannot believe the amount of bad debt we are having. It seems HMRC are not giving anyone a chance. If you do not pay VAT or tax it seems HMRC is going in with the knife.”

He added: “It’s not just the bad debt, it is the continuing business that falls as well.”

His comments have come just days after accountancy firm Martin Aitken & Co said Scotland appeared to be “disproportionately targeted” by HMRC.

A spokeswoman for HMRC said: “HMRC has an outstanding track record in supporting those who are experiencing genuine difficulty paying their tax debts, and does not initiate legal proceedings against any business lightly.

“HMRC only initiates administration, winding up or bankruptcy action where it believes this is the best course of action to protect the interests of the Exchequer.

“There is little HMRC can do for a business whose viability is dependent on not paying the UK taxes to which they are liable.”

Family-owned H Morris was founded 107 years ago by Mr Morris’s grandfather. In its early days the company fitted out the Gleneagles and Turnberry hotels as well as the Cunard Queen Mary. During the Second World War it was involved in the manufacture of Enfield rifle butts.

At the time of the Millennium Morris employed around 1000 people but has undergone a rapid slimming down after a tough two years following the financial crisis.

In 2008 it sold its Homestyle kitchens operation and closed its education business.

The revamp was completed in the last financial year with the sale of Morris’s ROC office furniture business.

The company now concentrates on contract and domestic furniture.

Morris employed 126 people at the end of its financial year although Mr Morris said this has since increased slightly.

Mr Morris said he is confident the company is now positioned correctly: “Operationally I am pleased. Quality is good, labour relations are good: all the things that are difficult to get right.”

He added: “For me the most important thing in the business is direction not profit.

“I want to make sure we are doing a good job.”

He noted that consumer spending remains under pressure: “Volumes are light, margins are light,”

He added: “We will probably start expanding next year. This year is about the same as last year.”

Despite this, Mr Morris believes the company is to some extent benefiting from a subdued housing market as some shoppers buy furniture instead of moving house.

Mr Morris, a keen skydiver, argued that the company still has key advantages over its rivals who focus on importing furniture from overseas.

“We have a lot of stock. Instead of having to buy a container we can deliver in four to six weeks on average.”

The company has changed its ranges to cater to consumer tastes with sales of leather upholstered and reclining furniture through its Relaxateeze brand doing particularly well.

But he complained: “We get copied very heavily.”

He also noted that it is hard to wean Britons off cheap furniture: “Design comes a poor second to price in Britain. “

But he maintains a very positive view of the future: “The minute the market comes up and we hear the starting gun, we are in great shape to start sprinting.”