The sole director shareholder of a company that was liquidated with outstanding amounts of PAYE and National Insurance contributions was held to be personally liable for those debts.
The respondent (SW) was the sole director and shareholder of a trading company. He drew money from the company as director’s loans. At the end of the year, a small amount of remuneration and a larger dividend were credited to his director’s loan account. However, director’s loans remained outstanding and increased over a number of years.
SW became concerned about the state of the company’s business. He sought advice from an insolvency practitioner, who advised him to put the company into liquidation. SW was also advised that there were insufficient available profits for the company to pay dividends, so payment to the appellant would have to be wholly by way of salary.
SW’s accountant
