Understanding the impact of a Personal Liability Notice (PLN)

What is a Personal Liability Notice (PLN)?

A Personal Liability Notice, or PLN, is a notice issued to an individual by HMRC, in respect of unpaid National Insurance Contributions.

A Personal Liability Notice transfers a company’s liability for unpaid National Insurance Contributions away from the company and over to its directors personally. It’s a serious measure that’s been put to use more frequently since they were first introduced in 2009.

Having added Personal Liability Notices to their arsenal of weapons for fighting tax fraud, HMRC now also use them to deal with a range of issues including preference payments and in compulsory liquidation cases where they believe National Insurance Contributions have been deliberately avoided.

When are Personal Liability Notices issued?

The deliberate non-payment of National Insurance Contributions by company directors has become a particular focus for HMRC investigators, and can result in a Personal Liability Notice being issued.

The following scenarios are likely to attract interest from HMRC in this respect:

The overarching reason for HMRC issuing a Personal Liability Notice is the belief that the director or other company officer has intentionally tried to avoid paying company National Insurance Contribution payments. Directors can also be held liable for any interest and penalties due on the unpaid amounts.

“Called for help with closing non-trading companies and Chelsea advised me on what to do and instead of taking advantage as others would by taking on the case and charging loads. She gave me a solution that would cost £20. Very pleased with the service and thankful for Chelsea’s advice.”

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What does a Personal Liability Notice mean for the recipient?

Personal Liability Notices can be issued to company directors, shadow directors, and other officers of the company. HMRC will conduct an investigation and invite anyone they believe may have committed serious tax offences for interview prior to issuing a notice.

Directors and others have the opportunity to explain why their company’s National Insurance liabilities haven’t been paid, and if HMRC feel the reasons are genuine, a Personal Liability Notice won’t be issued.

Personal Liability Notices are often related to significant sums of money owed, so for those who do receive one, it can mean personal bankruptcy, disqualification as a director, and even a prison sentence if the level of fraud is severe.

How Real Business Rescue can help with Personal Liability Notices

It is possible to challenge a Personal Liability Notice, but you need to act quickly if you receive one. Real Business Rescue has extensive experience in helping directors and other company officers faced with a Personal Liability Notice. We offer free same-day consultations to quickly identify the seriousness of your situation, and provide advice for directors across the UK.