are the director responsible for company's debts with personal assets?

A company owes IR a large amount of PAYE over many months. The company has no assets. IR have indicated they don't accept payment spread over a few months by post-dated cheques and they insist that the director takes out a personal loan. If the company goes into liquidation, what do you think the position will be?

E.g. can IR start legal proceedings against the director to recover the debt from personal assets or make the director bankrupt in the absence of any assets? Where is the limited liability?

Any previous experience anybody or clarification of the legal position are welcome. Thank you.
jim

Comments
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Limited Liabilty

NeilW |

....wrongful or fraudulent trading...

martinfoley07 |

Get specialist advice

davidwinch |
davidwinch's picture

Get the lawyers involved

Anonymous |

The IR are not acting properly

Ken Howard |

Insolvent trading?

Chris Smail |
Chris Smail's picture

directors/owners PAYE?

martinfoley07 |