HMRC Personal Liability Notice
A Personal Liability Notice, or PLN, is a notice HMRC can issue to make a company director or officer personally liable for certain unpaid National Insurance contributions, where the failure to pay was attributable to that person's neglect or fraud. It is one of the relatively few ways a company tax debt can become a personal debt, so it should never be ignored. HMRC; Social Security Administration Act 1992
- What it is
- A notice making a director personally liable for some unpaid NIC
- When
- Where non-payment was due to the director's neglect or fraud
- Can you challenge it?
- Yes, on the amount or whether the test is met, within time limits
- Do not
- Ignore it; a PLN turns a company debt into a personal one
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A rare bridge from company to personal debt
Most company tax cannot be passed to directors, but a PLN can. It is closely linked to PAYE and NIC arrears: PLNs are most associated with situations where National Insurance deducted from wages was not paid over to HMRC and the director was responsible for that decision.
Receiving a PLN does not automatically mean you must pay, because there are grounds to challenge one. If you receive one, take advice promptly from a Licensed Insolvency Practitioner or specialist adviser about challenging it or dealing with it as part of the wider position.
Related data
Our HMRC tax debt figures: The enforcement backdrop: how much tax debt HMRC is carrying. Every page on our data hub names its official source.
Where to go from here
- If you decide to speak to a Licensed Insolvency Practitioner, choose your own: our practitioner directory lists every practitioner on the official Insolvency Service register, and how to choose an insolvency practitioner explains what to ask. Always confirm their entry on the official register before you instruct anyone.
Common questions
Can I appeal a Personal Liability Notice?
Yes. You can challenge the amount or whether the neglect or fraud test is met, but there are strict time limits, so take advice as soon as you receive one.