MONTHLY SUCCESS STORY – VAT

Success story – March 2024

Personal Liability Notice

The clients were referred to me by one of my accounting clients, both directors of the company had been issued with a Personal Liability Notice (PLN) amounting to £200K.

During a routine VAT inspection of the client’s company several errors had been identified and HM Revenue and Customs (HMRC) raised an assessment and charged penalties.

The directors decided to make the company insolvent. However, as the errors were held to be deliberate, HMRC are legally entitled to make the directors personally liable for the debt by issuing the directors with PNLs.

The clients engaged Deeks VAT consultancy on the 17th February 2024. We requested an internal review of the PLNs. HMRC requested additional information, which was promptly provided.

On 12th March 2024 HMRC responded to say the that a decision had been made to downgrade the penalty behaviours from “deliberate” to “failure to take reasonable care”. As the penalty behaviour is no longer considered to be deliberate the PLNs will no longer apply.

As you can imagine the clients were overjoyed.

This is also a great example of HMRC working proficiently.

For all enquiries

Jane Deeks

Managing Director

jane@deeksvat.co.uk

‭+44 7710 553831‬