HMRC is entitled to issue a Joint and Several Liability Notice against two or more directors, and others associated with a company, holding them jointly and severally liable for payment of company debt owed to HMRC.

The issue of such Notices has become  more frequently used by HMRC  where it considers that a company is, or is about to become insolvent and the tax it owes may not be paid.

Tim Thompson of Kangs Solicitors briefly outlines the nature of Joint and Several Liability Notices.

Kangs Solicitors Tax Team, provides a wealth of experience when representing companies, directors and individuals in respect of both civil tax and criminal tax issues.

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Joint and Several Liability | Kangs Tax Solicitors

The ‘joint and several’ liability rules, in so far as debt to HMRC is concerned, include directors, the company secretary, managers and any other individuals deemed responsible for the incurrence of the debt.

HMRC is entitled to hold any individual responsible for the debt and, where there are two or more of those deemed responsible they will be personally and jointly liable.

Each party is liable to the extent that if one, or more, of the others is unable to pay, that person is responsible for the whole debt.

HMRC is not obliged to select any particular debtor for repayment or consider equality or fairness between the debtors and it can pursue any party for the entire sum owing. It then falls to the debtors to determine their respective liability between themselves.

Service of a Joint and Several Liability Notice | Kangs Company Insolvency Solicitors

An authorised officer may serve such a Notice upon an individual if satisfied that:  

  • a company has entered into tax avoidance arrangements or has engaged in tax evasive conduct,
  • a company is subject to, or there exists the serious possibility of, an insolvency procedure,
  • that individual was responsible for the company’s conduct having taken part in, facilitated or assisted or from which that person knowingly benefited,   
  • there exists or may exist, a tax liability relating to the tax-avoidance arrangements or evasive conduct,
  • serious possibility exists that some or all of the company’s tax liability will not be paid.

Contents of a Joint and Several Notice | Kangs HMRC Liability Solicitors

When a Notice is served it must:

  • set out the reasons for which it is believed that service is justified,
  • state the effect of the Notice,
  • specify any amounts for which the individual is liable,
  • offer the individual a review of the decision to give the Notice, and explain the effect of the right of review,
  • explain the right of appeal.

How Can We Assist? | Kangs Tax Review and Appeal Solicitors

Issues involving HMRC can be very confusing, worrying and daunting but are frequently resolved with a proactive approach. When considering a review or appeal, there are strict time limits that must be adhered to. Therefore, early advice should be sought upon receipt of any Notice of any description from HMRC.

Kangs Solicitors has been representing clients since 1997 in relation to tax investigations and we regularly work with the most highly ranked Junior Barristers and Queen’s Counsel in the country.

We welcome enquiries by telephone or email.

We provide an initial no obligation consultation from our offices in London, Birmingham and Manchester.

Alternatively, we provide initial consultations by telephone or video conferencing.


Hamraj Kang
07976 258171 | 020 7936 6396 | 0121 449 9888

Tim Thompson
020 7936 6396 0121 449 9888

John Veale
0161 817 5020  | 020 7936 6396 07989 521 210