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.
A winding up petition is a common method by which HMRC deals with enforcement of any non-payment of tax liabilities by companies.
A winding up petition is a court application which can be made by any creditor (eg HMRC), the company or its directors seeking a court order terminating a company’s business. Once this is done, it is placed 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.
- HMRC will always precede issuing a winding up petition 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;
- It is vital these are not ignored and you try and avoid a petition being issued. Our team can help in this process.
Personal risks directors face if a company is wound 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
- prosecution.
Do not ignore the threat of an HMRC winding up petition
It is vital not to ignore a winding up petition threat. If you do, it can affect the directors personally.
At Francis Wilks & Jones we have considerable experience of
- negotiations with HMRC;
- removing winding up orders;
- company restructuring;
- unfreezing bank accounts;
- accelerated payment notices;
- personal liability notices;
- VAT security claims;
- appeals to tax tribunals;
- insolvency claims by liquidators and;
- defending director disqualification claims.
Please call any member of our company rescue, winding up petition or tax disputes team for your consultation today and we will call you back at a time convenient to you.
