Mark McLaughlin looks at new HMRC powers to make company directors (and others) jointly and severally liable for unpaid tax liabilities.
Business owners want their enterprise to be successful and financially rewarding. Unfortunately, this is not always the case.
If the business fails, HM Revenue and Customs (HMRC) may miss out on unpaid tax liabilities. However, following recent changes, business owners may be unable to walk away and start new businesses with a clean tax slate.
Not so fast…
HMRC can now make company directors and others joint and severally liable for the company’s tax liabilities in certain circumstances that the government had previously considered unacceptable.
The rules allow HMRC to give a ‘joint liability notice’ to individuals if a company liability arises in any of the following three