Section 97ZB — Finance Act 2014: Liability of directors for relevant PAYE debts

Liability of directors for relevant PAYE debts 97ZB 1 This regulation applies in relation to an amount of relevant PAYE debt of a company if the company does not deduct, account for or (as the case may be) pay that amount by the time by which the company is required to do so.

2 HMRC may serve a notice (a “personal liability notice”) on any person who was, on the relevant date, a director of the company—

a specifying the amount of relevant PAYE debt in relation to which this regulation applies (“ the specified amount ”),

and b requiring the director to pay to HMRC—

i the specified amount, and ii specified interest on that amount.

3 The interest specified in the personal liability notice—

a is to be at the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of TMA, and b is to run from the date the notice is served.

4 A director who is served with a personal liability notice is liable to pay to HMRC the specified amount and the interest specified in the notice within 30 days beginning with the day the notice is served.

5 If HMRC serve personal liability notices on more than one director of the company in respect of the same amount of relevant PAYE debt, the directors are jointly and severally liable to pay to HMRC the specified amount and the interest specified in the notices.