Personal Tax Liability for Directors of Insolvent Companies

The government has recently published its guidance on the powers granted to HMRC in the Finance Act 2020 to serve a ‘joint and several liability notice’ on individuals who are repeatedly directors of companies which either have unpaid tax liabilities or who have failed to submit tax returns. The effect of the notice is to make directors personally liable for their company’s outstanding tax. 

The objective of the legislation is to stop the practice of some individuals who place their companies into liquidation to avoid making payment of tax, only to start trading again with another company. 

Joint and several liability notices for repeated insolvency and non-payment cases When HMRC will issue a joint and several liability notice to individuals who have been involved with companies which have become insolvent and have a tax liability with HMRC.

https://www.gov.uk/guidance/joint-and-several-liability-notices-for-repeated-insolvency-and-non-payment-cases?dm_t=0%2c0%2c0%2c0%2c0