The managing director of a company that went into liquidation owing National Insurance contributions was personally liable to HMRC for the liability, as the company’s failure to pay was attributable to the director’s neglect.  

In 2015, HM Revenue and Customs (HMRC) were investigating the affairs of a company (CML) and its director/shareholder (RW). HMRC suspected the issue of false invoices to generate fraudulent VAT repayments; another company (HCLEC) was among those implicated.  

HMRC became aware of a letter dated 27 February 2010 from CML (trading as Payroll Management Services) to the appellant at HCLEC, in which CML agreed to take on the payroll responsibilities for HCLEC from l March 2010. 

On 25 February 2011, CML wrote to advise that HCLEC owed payroll costs of £302