Received an HMRC Winding-Up Petition

If your company has received a winding-up petition from HMRC, you need to act urgently.

A winding-up petition is a formal application to the court seeking to have your company wound up because it has failed to pay its debts. If a winding-up order is eventually made, the company will enter compulsory liquidation.

At this stage, time matters and you should seek professional advice immediately.

Has HMRC issued a winding-up petition against your company?

Speak confidentially to a Licensed Insolvency Practitioner at Umbrella.UK Insolvency as soon as possible.

Request a free consultation

Call 01625 546 240 for immediate help

What is an HMRC winding-up petition?

A winding-up petition is a legal application asking the court to order an insolvent company into compulsory liquidation.

HMRC may pursue winding-up proceedings where a company has significant unpaid tax liabilities and previous attempts to recover the debt have not resolved the position.

This can relate to debts including VAT, PAYE, National Insurance and Corporation Tax.

Receiving a petition should never be ignored.

Does a winding-up petition mean my company is already in liquidation?

No.

A winding-up petition is an application to the court. It does not itself mean the company has already been liquidated.

However, if the process continues and the court makes a winding-up order, the company will enter compulsory liquidation.

The period between receiving a petition and the court hearing can therefore be critical.

What should I do after receiving an HMRC winding-up petition?

Seek professional advice immediately.

You need to establish:

whether the debt is correctly due
the company’s current financial position
whether the debt can realistically be resolved
whether the underlying business remains viable
what insolvency or restructuring options, if any, remain available
what actions directors should and should not take at this stage

Do not simply assume there is nothing you can do, but equally do not delay dealing with the petition.

Can an HMRC winding-up petition be stopped?

Potentially, depending on the circumstances and the stage proceedings have reached.

There may be options where the debt can be resolved, is genuinely disputed or an appropriate formal insolvency or restructuring procedure can be pursued.

However, there are strict legal and practical considerations once a petition has been presented.

Directors should therefore take specialist advice rather than attempting to resolve matters without understanding the implications.

What happens after a winding-up petition is issued?

Unless the matter is resolved or the petition is otherwise dealt with, it can proceed towards a court hearing.

There are also important consequences surrounding the presentation and advertisement of a petition.

If banks, suppliers and other parties become aware of the proceedings, the company’s ability to continue operating can be seriously affected.

This is one reason why immediate advice is so important.

Can my company’s bank account be frozen?

If A winding-up petition can create serious banking difficulties.

Once a bank becomes aware of winding-up proceedings, it may freeze the company’s bank account to protect its position.

This can make continuing to trade extremely difficult.

There are legal mechanisms which may be relevant in certain circumstances, but specialist advice should be obtained urgently.

Can I pay some creditors after receiving a winding-up petition?

Directors need to be extremely careful about transactions after a winding-up petition has been presented.

Certain transactions involving company property after the commencement of winding-up proceedings may subsequently be void unless the court orders otherwise.

For this reason, you should obtain professional advice before making significant payments, transferring assets or taking other major financial decisions.

What happens if the court makes a winding-up order?

If the court grants the petition, the company enters compulsory liquidation.

Control of the company passes away from its directors, and the company’s assets and affairs will be dealt with through the formal liquidation process.

The conduct of the directors and the company’s affairs will also be considered as part of that process.

What if the underlying business is still viable?

A winding-up petition does not necessarily mean the underlying business has no value or future.

However, once proceedings have reached this stage, the situation is considerably more urgent and the range of available options may be narrower.

Depending on the circumstances, a Licensed Insolvency Practitioner can assess whether a rescue, restructuring or other insolvency procedure is realistically available.

What if the company cannot be saved?

If the company is insolvent and there is no viable route to rescue it, professional advice can help directors understand what happens next and their responsibilities.

It is far better to address the position directly than to ignore the petition and allow events to progress without understanding the consequences.

Get urgent advice about an HMRC winding-up petition

A winding-up petition is one of the most serious stages of HMRC debt enforcement.

If your company has received one, do not wait until the court hearing before seeking help.

Umbrella.UK Insolvency Insolvency’s Licensed Insolvency Practitioners can assess your company’s position, explain what the petition means and help you understand the options that may still be available.

HMRC petitioned to wind up your company?

Speak to Umbrella.UK Insolvency urgently and confidentially.

Request a free consultation

Call 01625 546 240 for immediate help

What our clients tell us

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Tom Fox was incredibly helpful as I prepared to liquidate a couple of companies - clear advice, a respectful approach to both myself as director and the creditors, and a reasonable fee structure vs many of the national IP's I spoke to whilst researching who to work with.

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I engaged Umbrella accountants to oversee a Members Voluntary Liquidation for the small consultancy business I've been running. The team talked me through the MVL process, steps and requirements. The paperwork involved was well explained and straightforward, with the initial disbursement of funds handled very quickly and professionally under tight deadlines.

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