The decision in a recent tax tribunal case reminds us that directors and other company officers may be personally liable for VAT penalties of their company. The recent case involved a penalty for late registration for VAT where the threshold had been exceeded.
Three conditions must be satisfied before the liability for a penalty payable by the company can be imposed on an individual:
1) A penalty must be payable by the company for a deliberate failure
2) The individual on whom HMRC seek to impose liability must be an “officer” of the company
3) The deliberate failure must be attributable to that officer
If you are concerned about a tax enquiry into your affairs, worried that you may have possibly under declared or, worse still, you are already under enquiry, our Beavis Morgan tax specialists, some of whom are former HMRC Inspector of Taxes, are well versed in dealing with all types of tax issues.
We are also readily available to oversee HMRC disputes on your behalf, as well as to represent clients in appeal proceedings before the Tax Tribunal. In some situations, we can also offer professional fee protection insurance, so the costs are covered in whole or in part.
Through our commitment to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, we will restructure your affairs in a tax effective and efficient way.
For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner.