Winding-Up Petition by HMRC

A Winding-Up Petition is a Court application which can be made by any creditor, the Company or its Directors seeking a Court Order terminating a company’s business and placing it into the hands of the Official Receiver, as Liquidator, to liquidate all of the business and assets for the purpose of remitting the proceeds to ALL creditors, net of costs.  This is the most popular method by which HMRC deal with enforcement of any non-payment of tax liabilities by companies.

For more information on Winding-Up Petitions (and Bankruptcy Petitions) please click here.

HMRC will always precede such a drastic step with initial letters of enquiry, investigations and effort to seek an early resolution to such matters, for example by use of a Time to Pay Agreement.  However, these are not always successful or are not taken up.

For Directors of a company wound-up, the pain does not stop there as they face considerable personal risks both to their successor company(s)  and to themselves.

Such risks to themselves can include a Personal Liability Notice, Director Disqualification Claims, Compensation Order claims, claims by the company’s Liquidator, Bankruptcy and, potentially, Prosecution.

In respect of the claims that can be brought by an appointed Liquidator over the company (either claims brought on behalf of the company or claims which originate under the Insolvency legislation) please click here.

Accordingly, the simple ignorance of a warning letter or a threat of a Winding-Up Petition will not just be a consequence that affects the company, but it will have a severe impact on all company Directors.

At Francis Wilks & Jones we have considerable experience of negotiations with HMRC, including Accelerated Payment Notices, Personal Liability Notices, VAT Security or any other claim - including appeals to Tax Tribunals or insolvency claims by Liquidators and defending Director Disqualification Claims.

Please call any member of our Tax Disputes team for your consultation now on 020 7841 0390.  Alternatively email us with your enquiry at info@franciswilksandjones.co.uk and we will call you back at a time convenient to you.