A winding up order for non payment of taxes can be frightening. But there are always things which can be done - negotiated settlements, company restructuring, disputing the claim, seeking business funding or applying for a validation order as just some of the choices. Let our experts help.
If an HMRC winding up petition has been issued against your company and the debt has been paid, it is essential to ensure the petition is formally dismissed by the court.
Paying the debt alone is not enough. Until the petition is withdrawn or dismissed, it remains live on the court record and can still cause serious consequences to a company.
Why is dismissal so important?
Even where the petition debt has been settled, leaving the petition in place creates risk.
- If the petition has been advertised in the London Gazette, it may already be public knowledge. Banks may freeze accounts and suppliers may tighten credit terms.
- More importantly, other creditors can support an existing petition. If that happens, the company could still face a winding up order even though HMRC has been paid.
Prompt dismissal removes that risk. We are experts in getting petitions dismissed.
What happens if the debt has been paid in full?
If the petition debt and HMRC’s legal costs have been paid, the next step is to secure dismissal of the petition.
- This requires a formal application to the court.
- Whilst the process is procedural, it must be completed correctly through the court’s electronic filing system.
Until the court seals the dismissal order, the petition remains active.
Speed is critical. It is key for any company to get the petition off the court record as quickly as possible.
Can a petition still proceed after payment?
Yes, in certain circumstances.
If other creditors have formally supported the petition before dismissal, they may continue the proceedings. The company would then need to address those additional debts to prevent a winding up order.
This is why delay after payment is dangerous. The longer a petition remains active, the greater the risk of support from other creditors.
Our team has 25 years’ experience negotiating with supporting creditors to help get the petition dismissed.
What if the company still needs to trade?
Where a petition remains active and the company’s can suffer from a frozen bank account, and it may be necessary to apply for a validation order to allow continued trading while dismissal is being processed. Our team can help solve both of these problems.
Directors must be careful not to make post-petition payments without proper authority, as these may later be challenged if a winding up order is made.
Act quickly to protect the company
Once the HMRC debt has been resolved, securing dismissal of the petition should be treated as a priority.
Formal dismissal:
- Removes the immediate risk of compulsory liquidation
- Prevents other creditors from supporting the petition
- Helps stabilise banking and supplier relationships
- Reduces reputational risk
The petition process in England and Wales is procedural and time-sensitive. Taking swift steps to dismiss the petition protects both the company and its directors.
Our team of winding up petition solicitors at Francis Wilks & Jones are the best in the country. We specialise in actin for companies facing a winding up order by HMRC. Our advice is fast, effective and highly effective. Contact one of our team of expert winding up petition and company rescue lawyers now for your initial consultation. Let us help.
Fantastic firm, nothing was to much trouble. Direct to the point, so helpful would recommend to anyone, I would definitely use them again.
A client that we defended from an HMRC petition
