Funders were unable to agree a package of financial support to allow the community service to remain open

A community hub fell into administration after failing to pay a significant VAT bill.

The Legacy Hub in Dalmarnock, which was operated by the People’s Development Trust, closed last month – less than four years after it was opened.

The hub was created as part of the Glasgow 2014 Commonwealth Games legacy and it has emerged that a £250,000 tax bill related to its construction was key to the collapse of the centre.

A report in the Sunday Herald revealed that the tax issue was one of the issues the trust could not overcome.

A spokesman on behalf of the funders - Glasgow City Council, the Scottish Government, Clyde Gateway and the National Lottery Community Fund, said: “In recent months, the main funders of the PDT worked closely with its board and provided them with a significant level of support to explore ways that would resolve the persistent financial, operational and governance issues faced by this community facility.

“However following careful consideration, including reports from external consultants, the funders were unable to agree a package of further financial support.”

A spokesman for the Lottery fund added that the VAT demand was considered one of the financial issues the service could not overcome.

Around 25 jobs have been lost and many community services ceased as a result of the closure.