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At Smart Business Recovery, we've seen firsthand the personal toll and future problems that unpaid tax obligations can cause, regardless of company director status. (see our advice on dealing with HMRC here) It’s tempting to see tax issues as a purely business matter, but that isn’t always the true as the case of Rob Cross, the former darts world champion, vividly illustrates
Rob Cross rose to fame in 2018 when he lifted the PDC world trophy in front of millions of darts fans. As with many professional sports players, he was also the director of a limited company, in this case, Rob Cross Darts Ltd, which handled the business side of his sporting career. However, despite his success, Cross allowed significant tax debts to accrue between 2020 and 2023. During this time, he withdrew more than £300,000 and, by the time his company entered liquidation, he had also taken over £400,000 via a directors loan account. Soon, the business found itself unable to meet its obligations. Inevitably, that led to insolvency with over £450,000 in Corporation Tax, VAT, PAYE, and National Insurance outstanding. In the final accounting, his company had only paid just under £42,000 to HMRC. To make matters even worse, over £665,000 had been transferred to a connected party.
Clearly HMRC were not going to take this lying down.
No, not in this case. As director, it is your duty to ensure that the tax is paid and not only did that not happen, but he also took significant amounts of money out of the business. As a result, Rob Cross faced severe personal and professional repercussions. In June 2025, the Insolvency Service disqualified him from acting as a company director for five years. This effectively removes his ability to manage or form any other businesses without explicit court permission.
As well as being banned from being a director, he was compelled to take out an Individual Voluntary Arrangement (IVA) to pay monies owed back. That means a significant change to his financial freedom and future income, as repayments are directly tied to his earnings.
Limited companies do offer some protection, but it isn’t some sort of magic shield that provides absolute immunity. HMRC has options when it comes to recovering unpaid tax, and it will use them aggressively.
Having an outstanding director's loan account when the business is insolvent, for example, can be extremely dangerous financially. When the insolvency occurs, any amounts withdrawn by directors as ‘loans’ become repayable immediately. That means the money taken as a director’s loan would have been seen as a personal debt that Rob Cross will now need to repay.
So, despite being a director, Rob Cross now finds himself in a difficult financial position that will likely affect his credit status, and under an IVA that will take years to clear... Not to mention the professional and personal impact that the insolvency and personal debt will have.
HMRC has powerful tools to recover unpaid tax, and they will use them if they need to. Their options include:
Limited company status does not provide invulnerability from consequences, as Rob Cross discovered, and it can be swept aside in some circumstances. We often call this Piercing the corporate veil. When it occurs, a court disregards some aspects of a business’s separate legal entity status. At that point the owners or controlling individuals can be made liable for the company's debts or obligations. This usually happens due to fraud or wrongdoing.
At Smart Business Recovery, we strongly recommend taking proactive measures to avoid the kind of situation Rob Cross is now in, so call us if you think you need help. Early engagement with HMRC is crucial. It will help you fully understand your options, as well as the expectations of HMRC, so you can protect yourself and your company. You can then perhaps look at ‘Time to Pay’ arrangements, which may provide some breathing room. More structured options like a Company Voluntary Arrangement (CVA) may be an option if the debts become overwhelming. If you are in a position where insolvency is inevitable, and sadly, that is often the case, we are here to find the right solutions.
There are some clear and often quite easy to follow guidelines to help reduce the risk of falling foul of HMRC.
Check your financial health regularly
Talk to HMRC
The experience of Rob Cross serves as a crucial reminder of how business decisions directly impact personal lives.
Acting proactively, seeking expert advice, and maintaining transparency with HMRC are important steps toward safeguarding your reputation, assets, and peace of mind.
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