By Jonathan Davies

The taxpayer is set to lose out on £78 million from the collapse of mobile phone retailer Phones4U.

Phones4U collapsed in September, but administrators PwC have said that creditors would receive just 0.4p for for every £1 owed.

Creditors, including HM Revenue & Customs (HMRC) in the form of VAT and corporation tax, are owed £168m. But just £167,000 of that will be paid.

Figures estimate that customers lost out on £4.8m when they didn't receive pre-ordered phones after Phones4U's collapse.

PwC said it has made good progress on unpaid staff wages, which totalled around £3.4m.

Phones4U collapsed after Vodafone and EE decided not to renew their deals to allow the retailer to sell their contracts. It accused Vodafone and EE of trying to “inflict maximum damage”, but Vodafone said it wasn't able to offer competitive terms.