The Seamount Blog

 

 

Artboard 5

PAYE Liability

If your limited company owes PAYE payments to HMRC some Directors assume that if they close the company the debt “dies”.

HMRC are starting to lose patience with some directors who have a series of failed businesses.  Take Michael Eames who was sole director / shareholder of A1 Recovery Portsmouth Limited (A1RP).  The company went it to  liquidation in July 2017 owing HMRC in excess of £100k (plus interest) in unpaid PAYE.

Under section 121C HMRC exercised their right to convert the corporate liability to a personal one.  Whilst HMRC made no allegations of fraud they determined that Mr Eames was neglectful in his duties.

You will also need to be aware that even if you don’t put your company in to liquidation any interest incurred isn’t a corporate liability, it is considered a director / shareholder liability and therefore is put against your Directors Loan account on your balance sheet.

Beware, if you owe HMRC as a Director / Shareholder, they may be coming after you.

 

Do you want to know how we can help you?

We would be happy to discuss your requirements and put the most appropriate package together for you.

 

Seamount Logo FullDark





Get in touch

Gryson House
The Grove
Pontllanfraith
NP12 2EQ

Tel: 01495 806610
enquiries@seamountbiz.co.uk





Important Stuff

Terms of Use
Privacy Policy
Cookie Policy
Acceptable Use Policy

Seamount is a trading name of Seamount Business Services Limited
Registered in England and Wales: 07737033.

Registered address: Gryson House, The Grove, Pontllanfraith, Wales, NP12 2EQ

 
 

xero-silver-partner-mtd-ready-badge

LA_AAT

Adam Hiscock is licensed and regulated by AAT under licence number 1001350.

Artboard 3