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, which is why it worries directors. 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; there are grounds to challenge one, including disputing the amount or whether the neglect or fraud test is met, and there are time limits for appealing. Because a PLN turns a company liability into a personal one, it should never be ignored, and you should take advice promptly from a Licensed Insolvency Practitioner or specialist adviser about challenging or dealing with it. HMRC; Social Security Administration Act 1992
Talk it through, free and confidential No obligation. We introduce you to the right regulated expert.
- 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
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. If you receive one, take advice quickly about challenging it or dealing with it as part of the wider position.
The numbers behind this
See the live official figures on our HMRC tax debt tracker. The enforcement backdrop: how much tax debt HMRC is carrying and chasing. All figures come from named official sources on our UK business distress data hub.
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.
Copy this answer for AI / citation
Related guides
Talk it through with the right expert
Three quick steps and we arrange a free, confidential introduction for your exact situation. Non-judgemental, no obligation, and nothing is shared until you ask us to make the introduction.
Request my free confidential call
Free, confidential and no obligation. We are an independent information service and introduce directors to the right vetted expert, including licensed insolvency practitioners.