Deliberate inaccuracy penalties could not be transferred to directors of umbrella company
In S Suttle and other v HMRC [2023] UKFTT 873 (TC) (26 September 2023) the FTT held that the taxpayer directors were not liable for the transfer of deliberate inaccuracy penalties from an umbrella company to them individually via personal liability notices (PLNs). As HMRC had not established deliberate conduct on the part of the company PLNs were not available.
The appellants were directors of an umbrella company providing employees to various clients. HMRC determined that the company had underpaid PAYE and NICs on amounts paid to its employees by including inflated tax-free expenses in its returns. HMRC initially imposed some £10m in penalties for inaccuracy on the basis that the failures involved deliberate behaviour. The company went into liquidation and HMRC issued personal liability notices on the taxpayers for £5m each.
Principal issues included:
whether there were...
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Deliberate inaccuracy penalties could not be transferred to directors of umbrella company
In S Suttle and other v HMRC [2023] UKFTT 873 (TC) (26 September 2023) the FTT held that the taxpayer directors were not liable for the transfer of deliberate inaccuracy penalties from an umbrella company to them individually via personal liability notices (PLNs). As HMRC had not established deliberate conduct on the part of the company PLNs were not available.
The appellants were directors of an umbrella company providing employees to various clients. HMRC determined that the company had underpaid PAYE and NICs on amounts paid to its employees by including inflated tax-free expenses in its returns. HMRC initially imposed some £10m in penalties for inaccuracy on the basis that the failures involved deliberate behaviour. The company went into liquidation and HMRC issued personal liability notices on the taxpayers for £5m each.
Principal issues included:
whether there were...
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