Irrelevant matters taken into account before security notices issued

HMRC issued notices of requirement for security for PAYE National Insurance and VAT from the taxpayer and also on a joint and several basis from its director Mr D. It claimed this was necessary because other companies of which Mr D had also been a director had gone into liquidation owing tax.

The First-tier Tribunal agreed that two companies run in effect by Mr D had failed owing considerable amounts to HMRC. It accepted Mr D’s contention that the reason for the businesses’ failure was because customers did not pay invoices on time but said HMRC’s concern was with the protection of the revenue only.

However with regard to two other companies cited by HMRC the tribunal noted that Mr D had not been a shareholder or director of either for much of the period during which they fell behind with their tax.

Further ...