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Successfully Opposing a Personal Liability Notice Issued by HMRC

Our Solicitors Successfully Defend a Client Hit With a Personal Liability Notice of £80,000 by HMRC

When a Personal Liability Notice is issued to an individual by HMRC, it transfers an insolvent company’s liability for unpaid National Insurance Contributions to the recipient of the notice – normally a director (or directors) of the company. Such a Notice is a serious measure, as this case study shows, in which our solicitors successfully opposed a Notice of c.£80,000 that HMRC had served on our client. The moral of this testimonial is that all is not lost when HMRC issues a Personal Liability Notice. The outcome, of course, rests on the particulars of each case, but in addition to this case, our Birmingham team has achieved a number of notable successes for Directors facing Personal Liability Notices.

The Details of This Case

Our client explains:

“I found myself in the unfamiliar and worrying position where I was served with a Personal Liability Notice (‘the Notice’) by HMRC following the insolvent failure of the limited company business of which I was a director.

Struggling with the impact of my business having failed, matters were compounded when I was served with the Notice requesting payment from me personally of circa £80,000.00, failing which, recovery action was contemplated against me to include the ability of HMRC to petition for my bankruptcy.

I was obviously shocked, alarmed and completely unprepared for the this turn of events that would not only impact my ability to earn and generate an income in my field of expertise, but also potentially risk the security of my family moving forward. 

I was under professional and emotional strain having not previously been through this process. I was at a loss as to what to do next.”

The Client Received a Recommendation to Talk to Us

“I approached a trusted contact who recommended Birmingham based NDP having had previous successful business dealings with them. I researched NDP via the internet and was immediately impressed by their website and their obvious knowledge and history of successfully dealing with HMRC.

I spoke with Neil Davies, in his capacity as Solicitor and Director of NDP, who spoke to me at length in relation to the background, the Personal Liability Notice process and the approach that needed to be to be taken.  Neil patiently listened to me and he explained the options available to me.

Neil and his assistant solicitor Gulshan Kumar approached the matter in a pragmatic and structured way. Both Neil and Gulshan’s continuing support through this incredibly difficult time was unwavering and will not be forgotten by me.”  

HMRC Withdrew the Personal Liability Notice

“Attributable to the hard work and expertise of Neil and Gulshan, HMRC withdrew the Notice issued against me.  The relief was enormous.

I cannot thank NDP enough!  If HMRC had succeeded, I would have likely lost my family home and also been unable to continue working in my field of expertise. Now this matter has been resolved, both my family and I can move forward with our lives.

I have absolutely no hesitation in recommending Neil, Gulshan and the wider team at NDP to anyone who finds themselves in a similar situation.  They only not made the difference, but literally gave me my life back.”

Personal Liability Notice

ND, Birmingham

Tax Litigation Work is a Key Specialism for NDP

Our contentious insolvency and commercial litigation work is perhaps what NDP is best known for. However, as this testimonial shows, tax litigation, including defending Personal Liability Notices (as in this case), as well as defending clients in relation to claims arising out of Employee Benefit Trusts, and other disguised remuneration schemes, is also an area of specialism.

We are seeing Personal Liability Notices being issued in increasing numbers by HMRC, particularly in formal insolvency procedures, where, following a compulsory liquidation of an insolvent company, there are charges of wrongful or fraudulent trading.

If you have received a Personal Liability Notice or other tax problem, are facing tax litigation, please contact us or call our solicitors on 0121 200 7040 at our central Birmingham HQ for a free initial chat.