It has historically been quite unusual for directors to be found liable for any of their company’s debts. New rules will allow unpaid creditors more scope, lower costs, and more benefit in suing directors. For example, if a company becomes insolvent and ceases to trade, and owes HMRC money (PAYE, VAT, Corporation tax) it is now much more likely that HMRC will try to show the directors have been wrongfully trading and must pay the money personally. If your company is in any difficulty it is crucial to take professional advice as soon as possible.

David Wilsdon