HMRC is increasingly pursuing company directors – and other individuals connected with the management of companies – to pay outstanding tax bills that are left when their business becomes subject to an insolvency procedure or where there is a serious possibility of it becoming insolvent says Pinsent Masons.
The firm’s research reveals that the amount that directors were required to pay to help settle the tax bills of their insolvent businesses rose more than sixfold from £2.3m to £15m in 2023-24.
The tax authority issued joint and several liability notices to 52 directors in 2023-24 – more than three times the 16 that were pursued in the previous year. These directors received a demand for £290 000 on average in the past year up from £142 000 a year earlier.
Sophie Warren senior tax manager at Pinsent Masons warns company directors that HMRC is...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.