Credit risk

Requirement to provide security

Mr and Mrs H were directors of T Ltd which was placed in voluntary liquidation in October 2014 owing VAT of £80 989 and PAYE tax and National Insurance of £119 807. When the company was dissolved HMRC was among the unsecured creditors.

The couple were also directors of CP Ltd but this was wound up in January 2018 owing VAT of £102 137. A year earlier HMRC had issued a notice of requirement to provide security but H said the company was unable to comply.

In February 2017 Crays Support Services Ltd was incorporated with H as sole director. In May HMRC explained in a notice that the company was a tax risk and required H to give security for PAYE tax of £19 584 and for National Insurance of £19 372. The company settled some of its tax and...