Summary
The directors of a company, which was liquidated with unpaid PAYE income tax and National Insurance contributions (NICs), were held not to be personally liable for those company liabilities.
Background
The appellants (husband and wife) were directors of a company which was liquidated in October 2010 leaving unpaid PAYE income tax and NICs liabilities, part of which related to amounts paid to them. The appellants appealed against determinations by HM Revenue & Customs (HMRC), which effectively shifted those liabilities from the company to them (under the Income Tax (Pay As You Earn) Regulations, SI 2003/2682, reg 72, and Social Security (Contributions) Regulations, SI 2001/1004, reg 86).
The company had operated its business successfully until June 2010, when it encountered unforeseen difficulties with a subcontractor who failed financially.
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