The directors of a company which failed to discharge all its PAYE liabilities on payments of earnings were held to be personally liable for the amounts unpaid.     

A company (IHL) was incorporated by two of the appellants (SPD and ASH) in 2002 to provide pharmacy services. SPD and ASH were employees, directors and shareholders of IHL. At its peak, IHL employed over 100 staff (the third appellant (JM) was employed within the IHL group since 2004, and later became IHL’s finance director). However, IHL went into administration in December 2008. 

By the time IHL went into administration, at least six cheques in respect of PAYE and National Insurance contributions (NICs) had been dishonoured. Immediately after the commencement of the administration, the business and assets of IHL were sold to another