If you have received a Personal Liability Notice, it’s unlikely to come as a surprise. In order to issue a Personal Liability Notice, HMRC have to conduct a thorough investigation into the debtor company and its officers.
This investigation is carried out by a specialist Personal Liability Notice team in HMRC’s London office.
Once they’ve carried out the investigation, HMRC have to decide, on the balance of probabilities, whether any of the company’s officers’ fraudulent or negligent behaviour caused the company to not fulfil its National Insurance Contribution obligations. If you have received a Personal Liability Notice, HMRC have decided that the answer to this question is yes.
The first question to ask is whether you think you have fair reasons why you shouldn’t be held liable for the company’s National Insurance Contributions. If the answer to this is no, there’s unlikely to be anything you can do to counteract the Personal Liability Notice and should arrange to make payment of the amount specified in the notice to HMRC.
If you do think that there are good reasons why you shouldn’t be held liable for the company’s National Insurance Contributions debt, there are a few steps you can take.
Your first step should be to seek help or advice from a company or firm with experience in dealing with Personal Liability Notices. Here at Company Debt we have a significant amount of experience in advising on and helping to appeal Personal Liability Notices. We can help you to ascertain why you have received a Personal Liability Notice and work out a plan of action for responding to the notice.
Appeal the Personal Liability Notice
You can only appeal a Personal Liability Notice on specified grounds set out in s121D(2) of the Social Security Act 1992. These grounds are as follows:
All or part of the National Insurance Contributions specified in the Personal Liability Notice should not have been included.
The company’s failure to pay the National Insurance Contributions was not due to fraudulent or negligent behaviour on your part.
You were not an officer of the company at the time that the company failed to pay its National Insurance Contributions.
If there is more than one officer of the company who has been issued with a Personal Liability Notice, the level of National Insurance Contributions apportioned to you under the notice was unreasonable.
Any appeal against a Personal Liability Notice must be made within 30 days of the date of the Notice. The appeal should be made in writing to the following address:
Insolvency & Securities
Personal Liability Notice Team
3rd Floor, Euston Tower
286 Euston Road
London, NW1 3UQ
When making the appeal, you must state which of the grounds set out above you are appealing under. You should also request that the disputed liability is postponed until the appeal is settled.
If you are not satisfied with HMRC’s decision on the appeal, you can then appeal to the Tribunals Service.
Need Personal Liability Notice Advice?
For free and confidential advice on tax debts and personal liability notices, including how to appeal, please contact us on 08000 746 757. You can also speak to one of our advisors by using the live chat button on your screen.