LEXLAW Solicitors & Barristers
Our client, Dr Elizabeth Donald represented by Jaron Dosanjh, told The Times that MFS’s collapse had been a “nightmare” in regards to her personal portfolio. Barclays, Santander and Wells Fargo are some of the institutions thought to be caught up in the Mayfair lender’s collapse — but what about individuals? Article by James Hurley, Assistant Business Editor, The Times
When a company defaults, directors who have signed personal guarantees may face direct personal enforcement. This guide explains how personal guarantees operate under UK law, when liability arises, how creditors pursue guarantors, and what legal options may be available to protect personal assets.
Sections 235 and 236 of the Insolvency Act 1986 impose powerful duties on company directors, officers, employees, and even third parties to co-operate with insolvency office-holders such as liquidators and administrators. Failure to assist properly during liquidation, administration, or bankruptcy can result in personal sanctions, court orders, fines, and even director disqualification.
We are the leading firm representing Directors and Companies facing HMRC Security Notices and we regularly succeed on behalf of clients. Here, our counsel successfully fought HMRC Security Notices that sought to impose over £215,000 in personal liability for VAT and PAYE debts. The case is a landmark victory against HMRC Notices of Requirement to give Security.
A winding-up order places a company into compulsory liquidation and has immediate legal and financial consequences for directors, creditors, and employees. This guide explains what happens after a winding-up petition order is made, the role of the liquidator, and the key risks and options that follow.
Personal Liability Notices (PLNs) are a powerful HMRC enforcement mechanism that can make company directors and officers personally liable for unpaid corporate tax debts, including PAYE, National Insurance Contributions, VAT, and CIS. In 2026, PLNs are increasingly used in insolvency and enforcement scenarios, placing directors’ personal assets and professional futures at direct risk.
A winding up petition can paralyse a business overnight. Bank accounts are frozen, payments become unlawful, and directors face personal exposure. A UK Validation Order is often the only legal remedy that allows a company to keep trading lawfully. This comprehensive 2026 guide explains how validation orders work, when they are granted, and why early instruction of specialist insolvency lawyers is critical.
An Account Freezing Order is one of the most disruptive financial enforcement tools available to UK authorities, allowing HMRC, the police and the National Crime Agency to freeze money held in a UK bank or building society account at a very early stage of an investigation. In many cases, the account holder has not been charged with any criminal offence, and may not even be aware that they are under investigation until the account is suddenly inaccessible.
Under the old Martland rules missing a tax tribunal appeal deadline meant case closure as time limits were treated as virtually absolute. The Upper Tribunal’s 2025 decision in Medpro v HMRC restores judicial discretion and elevates case merits. Taxpayers with credible explanations now have a realistic path to rescuing late appeals. Understanding the shift and presenting your circumstances effectively to a tribunal, could mean the difference between recovering a valid claim and losing it permanently.
This detailed guide explains the impact of compulsory liquidation. Early engagement with specialist insolvency and tax counsel is the most critical factor in minimising director exposure and defending or managing the process effectively. Our specialist solicitors and barristers are available to assist on a discounted fixed fee arrangement.