John Firth never imagined that ignoring tax letters could leave him personally liable for millions.
However, that is exactly what happened after HM Revenue & Customs (HMRC) finally ran out of patience.
The Yorkshire businessman became entangled in a tax case that dragged on for nearly a decade.
What began as an investigation into unpaid VAT spiralled into a personal liability of £7.4 million, because two of his companies had gone bust owing significant tax, and he did not respond effectively.
Rather than facing the issue early, Firth repeatedly postponed action.
He cited serious health concerns, submitted partial documents, and sometimes replied only to the tribunal, not HMRC itself.
Over time, this patchy communication frustrated the process.
Eventually, in January 2025, the tax tribunal struck out his appeal, not because HMRC’s case was flawless, but because Firth had delayed and obstructed proceedings for so long that a fair hearing was deemed impossible.
Business owners often believe that tax debt ends with the company, but when HMRC suspects deliberate wrongdoing or recklessness, directors can be held personally responsible.
That is what happened here. With Personal Liability Notices issued and no company left to pursue, HMRC turned its focus to Firth.
If you are facing questions from HMRC, especially around VAT or fraud allegations, ignoring them is the worst possible strategy. Silence and delay rarely work in your favour.
Instead:
Tax disputes are complex, but clarity and cooperation go a long way. The earlier you act, the more control you retain.
For help and guidance regarding tax disputes, please contact us today.
