In a solvent liquidation, a liquidator would typically notify HMRC immediately upon appointment to ascertain whether there are any outstanding returns and whether HMRC have a claim. A notice of intended dividend (“NOID”) would usually be issued giving HMRC and all other creditors a 4-8 week opportunity to submit claims against the company. Once the […]

When a company is placed into a solvent liquidation, the directors are required to make a statutory declaration stating that the company will be able to pay its debts together with statutory interest within 12 months of the liquidation. It has been widely accepted practice that some creditor claims may take longer than 12 months […]

It is five years since the government introduced the Covid financial support schemes.  Much has been written about the widespread abuse of those schemes. But has the passage of time started to dilute the number of examples of directors being punished for their misdemeanors?  The answer is a resounding no. A quick look on The […]

In the case of G Quillan v HMRC [2025] UKFTT 421 (TC), the director owed £439,954 to his company. The company was placed into liquidation and the liquidators reached a compromise with Mr Quillan and accepted £57,498. The liquidator closed the liquidation and HMRC raised an assessment under S415(1) Income Tax (Trading and Other Income) […]

One aspect of the Spring Statement which has been overlooked is the Chancellor’s attempt to collect in more tax debt. There is around £44 bn of tax debt with just under half of this over 12 months old. The Chancellor announced that HMRC will recruit 500 more compliance staff to assist with the debt collection […]

In the case of Bass & Ors vs Buchanan, the director was ordered to repay her director’s loan account balance of just under £300,000 which she had sought to re-categorise as remuneration shortly before her company had entered into liquidation. Historically, the director had received a modest salary of £6,000 pa and paid herself a […]