The decision in a recent tax tribunal case reminds us that directors and other company officers may be personally liable for VAT penalties of their company.
Three conditions must be satisfied before the liability for a penalty payable by the company can be imposed on an individual:
1) A penalty must be payable by the company for a deliberate failure.
2) The individual on whom HMRC seek to impose liability must be an “officer” of the company
3) The deliberate failure must be attributable to that officer.