‘Flipping’ a contractor’s limited company’s unpaid tax liabilities onto the individual is the focus of a campaign by HMRC. Our head of Forensics & Disputes, Liz Coleman writes for Contractor UK on how contractors can protect themselves against this risk.
“… in recent months we’ve seen an increasing trend for HM Revenue & Customs to seek to recover unpaid PAYE & NIC due on directors’ salaries, or even on payments made to close associates, from the directors themselves. In the case of NIC, the demand can even extend to unpaid debts on salaries paid to any employees …”