Joint Liability Notices – HMRC pierces the corporate veil!

This is a reminder that the Finance Bill 2019-20 (FB) is currently progressing through Parliament and it is expected to receive Royal Assent either later this month or in August.

One of the interesting features of the FB is that it introduces a new regime giving HM Revenue and Customs (HMRC) a power to issue notices to make directors of companies, together with shadow directors and certain others connected to a company, jointly and severally liable for the company’s tax liabilities.

JMRC can issue such notices only when the liability arises or is expected to arise from tax avoidance, tax evasion, repeated insolvency or a penalty for facilitating avoidance or evasion; and where the company begins insolvency proceedings, or is expected to do so, so that some or all of the tax liability will be lost to HMRC.

If you would like further information or to meet either in person at our Driffield, Scunthorpe or York offices, or virtually, then please “click and connect”

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