AR Tax Accountants

PAYE Debts and company liquidation

PAYE Debts and company liquidation

Personal Liability Notices can be issued to directors of companies that have been liquidated but have PAYE debts in order to get the director to cough up the tax.

The directors of the company are joint and severally liable. PLN’s have many targets including umbrella company directors who are not deducting tax on certain expenses paid to umbrella company contractors tax-free, directors of their own personal service company whose contracts are within IR35, managed service company directors, directors who provide fraudulent PAYE documents, etc.

PLN’s are generally only issued where HMRC can either prove fraud or neglect. Therefore in order to avoid getting a personal liability notice from HMRC after you have closed your company, I would advise that you get a full contract and working practices review.

Speak to the IR35 reviewer that you are using about getting a signed confirmation of arrangements statement. Your IR35 reviewer may also be able to provide cover for professional fees and any tax liability in the event of a HMRC investigation.

Should you want to purchase tax liability cover I work with Qdos as an introducer and my clients qualify for a 10% discount.

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The above information is just for guidance purposes only and is not a substitute for professional advice and consulting the legislation.

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