Insolvency and restructuring expert Begbies Traynor is warning that joint and several liability notices extend HMRC’s powers to recover unpaid tax debts when businesses go bust.

While company directors are generally protected by limited liability, recovery powers granted to HMRC in the Finance Act 2020 mean directors can face greater personal liability for tax debts held by the company in the event of insolvency.

This has potential ramifications for companies if they plan to use an insolvency procedure to deal with the tax arrears of their company, particularly if they already have a number of insolvencies behind them.