Personal
Liability Notices
Facing a personal liability notice from HMRC can feel daunting. It signals that HMRC is seeking to hold an individual — typically a company director, officer, or manager — personally responsible for unpaid taxes such as VAT, PAYE, or National Insurance. If HMRC succeeds, they can pursue personal assets to satisfy debts initially owed by the business.
At My Tax Consultants, we provide specialist support to individuals who are dealing with personal liability notice disputes, offering clear strategies to help protect their position and finances.
What is a Personal Liability Notice?
A personal liability notice (PLN) is issued by HMRC when they believe that a person’s conduct has led to unpaid company tax debts. The notice effectively lifts the corporate veil, moving the liability from the company to the individual.
PLNs are generally issued where HMRC believes that the individual acted deliberately, was seriously negligent, or knowingly permitted the company to fail to meet its tax obligations. Common circumstances include:
- The deliberate withholding of VAT payments
- Repeated non-payment of PAYE and National Insurance despite having the funds to pay
- Fraudulent claims for VAT refunds
- Dissolving companies with outstanding HMRC debts with no intention of settling them
Receiving a personal liability notice is serious and often leads to protracted disputes with HMRC, where early professional intervention can make a crucial difference.
Understanding Personal Liability Notice Disputes
When HMRC issues a personal liability notice, the burden is on them to prove that the individual’s behaviour justifies moving the debt from the company to the individual. Challenging these notices requires careful analysis of both the company’s records and the individual’s actions.
In dealing with personal liability notice disputes, several defences can arise, including:
- Showing that decisions were made reasonably and in good faith
- Demonstrating that there was no dishonesty or wilful neglect
- Proving that financial difficulties were due to external factors outside of the director’s control
- Evidence that directors took appropriate steps to mitigate the company’s liabilities
We work closely with clients to examine all circumstances surrounding the company’s operations and to build strong, evidence-based challenges to HMRC’s claims.
How My Tax Consultants Help with Personal Liability Notice Disputes
At My Tax Consultants, we focus on giving clear, decisive advice and robust defence strategies for individuals facing personal liability notice disputes.
Our approach includes:
- A full review of HMRC’s allegations and supporting documents
- Identifying weaknesses in HMRC’s case
- Preparing comprehensive written representations to HMRC challenging the notice
- Assisting with negotiations where appropriate
- Representing individuals at Tax Tribunals to dispute the personal liability noticeformally if necessary
Each case is handled with a dedicated strategy, tailored to the specific facts and with the client’s long-term financial interests in mind.
The Risks of Ignoring a Personal Liability Notice
Failing to deal with a personal liability notice promptly can result in HMRC taking enforcement action, including:
- Personal demands for payment
- Charging orders against personal property
- Bankruptcy proceedings
The financial and reputational risks are significant. Acting quickly to dispute or settle a personal liability notice is essential to protecting your personal wealth and future financial stability.
Why My Tax Consultants?
Our team brings years of experience in handling personal liability notice disputes across a wide range of industries and situations. We understand the practical steps needed to challenge HMRC effectively, from initial responses through to representation at Tribunal.
Choosing My Tax Consultants means securing a team that is focused entirely on achieving the best outcome for you, delivered with clear advice and consistent support throughout your case.
If you have received a personal liability notice or need advice about ongoing personal liability notice disputes, contact My Tax Consultants today. Early advice can significantly improve your chances of successfully challenging HMRC’s actions and preserving your financial security.
Let’s take the right steps together to address your situation head-on.
