A director successfully appealed against amounts assessed in respect of PAYE and National Insurance contributions not deducted from amounts which HMRC contended were paid to the director by his company.
The appellant was a director of a construction company (FL), which traded successfully for a number of years. However, FL encountered increasing financial difficulties in the second half of 2007. In October 2007, FL’s bank expressed serious concerns about the company’s viability and asked to see accounts for the 18-month period to 30 March 2007 as a condition of continuing to lend financial support. The accounts were prepared but never signed off or filed. In February 2008, the bank called in a secured overdraft, which caused FL to cease trading. The company was dissolved in November 2014.
HM Revenue and Customs (HMRC) issued discovery assessments on the basis that for the tax years 2005,