Transfer of
Liabilities
Being held responsible for another person’s or company’s unpaid taxes can create serious financial and legal issues. Transfer of liabilities cases are complex and often arise unexpectedly. At My Tax Consultants, we specialise in representing clients in transfer of liabilities disputes, providing strategic advice, practical solutions, and firm representation when you need it most.
What is a Transfer of Liabilities?
A transfer of liabilities occurs when HMRC seeks to recover a tax debt from someone other than the original taxpayer. This typically happens when HMRC believes that one business has taken over the operations, assets, or staff of another, and should therefore assume its tax debts. It can also happen where there are close links between two companies, directors, or individuals.
HMRC’s powers to issue a transfer of liabilities notice can arise in several situations, including:
- VAT group arrangements
- Phoenix companies (where one business closes and a new one immediately starts trading)
- Cases where directors or connected parties are pursued personally for company tax debts
Understanding Transfer of Liabilities Disputes
Transfer of liabilities disputes often hinge on whether HMRC can prove a real connection between the businesses or individuals. Key questions usually include:
- Was there a significant continuation of business operations?
- Were employees, assets, or clients transferred to the new entity?
- Did the successor business materially benefit from the previous business’s activities?
Each case requires a detailed examination of facts, contracts, company structures, and timelines. Without a strong response, HMRC can proceed with enforcement action based on assumptions that may not stand up to scrutiny.
At My Tax Consultants, we assess the situation from all angles, challenging HMRC’s findings where appropriate and putting forward clear evidence to support your case.
How My Tax Consultants Help with Transfer of Liabilities Notice Issues
Dealing with a transfer of liabilities notice demands precision and careful planning. We work closely with clients to:
- Review the legal and factual basis of HMRC’s claims
- Identify weaknesses or errors in HMRC’s assumptions
- Prepare detailed rebuttals supported by relevant documentation
- Communicate with HMRC and, if necessary, escalate matters to the Tax Tribunal
- Offer advice on settlements or structured payment arrangements if needed
Each action we take is focused on protecting your financial position and preventing unjustified liability.
Why Immediate Action MattersPersonal Liability Notice
When you receive a transfer of liabilities notice, the clock starts ticking. HMRC usually expects a response within a set period, and failing to act could result in summary enforcement. By seeking advice early from My Tax Consultants, you give yourself the best opportunity to challenge the liability effectively and avoid serious financial consequences.
We understand how stressful HMRC disputes can be. Our experience allows us to provide clear, practical steps forward, helping you address transfer of liabilities disputes confidently and with the right support at every stage.
Contact My Tax Consultants
If you have received a transfer of liabilities notice or are involved in transfer of liabilities disputes, contact My Tax Consultants today. Our team will explain your options clearly, prepare strong submissions, and stand by your side throughout the process.
Protect your financial future – speak to our experts without delay.
