This article looks at recent developments that target the individuals behind a company (or Limited Liability Partnership, which is strictly a ‘body corporate’) – and can make them personally liable for the company’s tax debts.
Background
HMRC used to hold preferential creditor status until Enterprise Act 2002 removed it in September 2003.
Then, it was argued HMRC’s preferential status was stifling enterprise because banks, etc., were discouraged from supporting businesses that were “under pressure”, knowing HMRC could then swoop in and baggsy everything in sight.
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