Glossary

Personal liability notice

A personal liability notice (PLN) makes a director personally liable for certain company debts — usually unpaid NIC — where HMRC finds fraud or serious neglect. It pierces the corporate shield.

2 min read

Director personally liableCertain debts

HMRC/fraud/neglectPierces the shield

Definition

A personal liability notice is issued by HMRC to make a director or officer personally liable for company debts — typically unpaid National Insurance contributions — where non-payment resulted from their fraud or neglect.

In plain terms

Limited liability normally shields directors, but a PLN removes that protection where wrongdoing is found, putting personal assets at risk.

Why it matters for your company

PLNs, along with wrongful-trading claims, are why directors must act properly as insolvency nears — pay Crown debts, keep records and take advice. See solvency and liquidator.