Don’t disappear when HMRC comes knocking – One director’s £7.4m mistake
Don’t disappear when HMRC comes knocking – One director’s £7.4m mistake

One Yorkshire company director tried the silent treatment, and it cost him over £7 million. Here is what happened, and why it matters to you.

What was the issue?

Two of John Firth’s businesses went under, leaving £7.4 million in unpaid VAT.

The companies did not appeal HM Revenue & Customs’ (HMRC’s) findings.

So, HMRC issued him Personal Liability Notices (PLNs) and went after him directly.

Why did it go so wrong?

He didn’t engage. Over nearly eight years, Firth gave limited responses, cited medical reasons for delays, and ignored HMRC communications at key points.

He kept pushing things back.

In early 2025, the tribunal threw out his appeal, not because he lost on tax grounds, but because they decided he had not cooperated enough to get a fair hearing.

Rare, but serious.

What are PLNs?

Personal Liability Notices mean HMRC holds you accountable for your company’s unpaid tax.

They are not handed out lightly, but if tax debts seem linked to dishonesty or neglect, expect scrutiny.

If HMRC is looking into you or your business:

  • Don’t go quiet
  • Don’t delay
  • Don’t assume limited company status protects you

Once HMRC starts asking questions, your response matters more than you think.

What should you do?

  • Open every HMRC letter
  • Respond clearly and completely
  • Get professional advice early
  • Stay organised, documents matter

Ignoring HMRC doesn’t make the problem go away.

If you have received communication from HMRC and need help with the next steps, contact our professional tax experts today.