Failure of company was attributable to the director

The taxpayer became a director of several companies during 2015 to 2016. By 2018 the companies had all failed.

One of the companies SP Surface Finishers Ltd went into liquidation owing HMRC substantial amounts of National Insurance contributions (NICs).

HMRC issued the taxpayer who was the sole director a personal liability notice under Social Security Administration Act 1992 s 121C on the basis that the failure to pay the National Insurance contributions was due to the taxpayer’s negligence.

The taxpayer appealed.

The First-tier Tribunal considered whether there was neglect on the taxpayer’s part – had he met the standard to be expected of a reasonable and prudent man in those circumstances?

The taxpayer said the company's failures to pay the PAYE and National Insurance due were in part because of his lack of training. The tribunal countered this saying he was aware of this when he took...