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Are You Liable For Your Employer's VAT Penalty?

HMRC Tax VAT Company Legislation Director Officers

Did you know that as a company officer (Director, Secretary, etc), you may be personally liable for any VAT penalties imposed on the company you work for?

This is not new legislation and has been around for a long time, but a recent tax tribunal case has, once again, highlighted this very real possibility that not many company officers are aware of.

It’s not that straight-forward however, as there are three conditions that must be met before a company officer can become liable;

1. Firstly, the penalty must be for a deliberate failure from the business.

2. Secondly, that deliberate failure must be attributable to that officer and deemed their responsibility.

3. And thirdly, the person must be an “officer” before they can be made liable by the HMRC.

It’s the responsibility of the employer to inform of this legislation prior to appointing a new officer. And, of course, it’s the responsibility of both the employer and its officers to ensure there are no VAT penalties at all.

Don’t leave your business and your future vulnerable. Get in touch via the form below and arrange your free consultation to see how Asquith & Co can assist you with all of your tax needs.

Get in touch to find out how we can help your business.