Can HMRC make directors personally liable for company tax?
Company tax arrears do not automatically become the director’s personal debt. HMRC can pursue individuals under specific statutory powers where the required conditions are met, including certain joint and several liability cases. A notice addressed to you personally needs separate, prompt advice.
Business Insolvency Helpline • Checked 1 November 2026
General guidance, with procedural detail focused on England and Wales. Rules and routes can differ in Scotland and Northern Ireland.
When can joint and several liability arise?
The legislation covers defined situations involving tax avoidance or evasion, facilitating such conduct, and repeated insolvency with non-payment. It does not mean every director of a company with VAT arrears is liable.
A relevant notice can make an individual liable alongside the company and others for the specified amount. Check the statutory basis, tax periods, calculations and conditions stated in the notice.
Are all personal tax notices the same?
No. A joint and several liability notice, a National Insurance personal liability notice, a penalty and a security requirement are different matters. Do not rely on advice about one as a complete answer to another.
Keep the full notice, attachments and delivery information. Ask the adviser to identify review or appeal rights and the applicable time limit before focusing only on repayment.
What if the company is already closing?
Closure does not automatically end a valid personal claim or prevent the company’s affairs being investigated. Give the office-holder the tax correspondence and obtain independent advice about your own position.
For ordinary company arrears, reconcile returns and balances by tax type. A clear schedule helps distinguish the company’s debt from any separately alleged personal liability.
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Related questions
No. Personal liability needs a separate legal basis; directorship alone is not enough.
Not necessarily. The relevant involvement, conduct and statutory conditions must be assessed, including the period before resignation.
Obtain advice promptly about the demand and deadline. Clarify liability and the implications of any proposed payment or settlement.
Sources checked for this guide
- Director information hub hmrc joint and several liability notices (www.gov.uk)
- Joint and several liability tax avoidance and evasion jasfs1 (www.gov.uk)
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