Winding Up Petition from HMRC
A Statutory Demand or Winding Up Petition from HMRC?
Are HMRC petitioning to have your company wound up? The advice may be slightly different when HMRC are the creditor as this will often be the result of unpaid taxes, and they will likely offer time to pay before filing a petition, which is often a last resort for them.
In addition, if you can prove that you cannot pay HMRC as a result of the implications of the coronavirus pandemic you are likely able to defer HMRC payments until 2021.
Nonetheless, if HMRC have served a statutory demand on your company, you do have the right to apply to the court set aside the demand within 18 days from the date the demand was served. The Court may consider an application to set aside a statutory demand outside the time limit (but this only applies so long as the HMRC have not yet requested a winding-up petition to be issued yet). We strongly advise that you seek legal advice as soon as the demand is served, or you will risk not being able to set aside the demand in time.
If it has reached the point where HMRC have filed a Winding Up Petition then this must be taken seriously to avoid the serious consequences this will have for your company. HMRC are no different to any other creditor in this respect, as they are fighting to recover moneys owed to them. Once a Statutory Demand is served your company will have a limited time to settle the debt (see advice above). You should also be aware that HMRC have the right to publicize the pending wind-up in the London Gazette if your company does not deal with the Petition in a timely manner (7 business days). This can have serious effects on your companies commercial reputation as it will likely attract the attention of your bank, your customers and your employees.
If you have received a Winding up Petition from HMRC, you need to know that all is not lost if you act quickly. There may be a number of options available to you to deal with the Petition. We strongly advise that you seek legal representation as soon as practicably possible once you have received a petition from HMRC, so as to deal with the matter fully and in timely fashion so as to avoid harsh consequences.
Our team of expert insolvency lawyers are on hand to guide you through the process each step pf the way to ensure your company the best chance of avoiding liquidation during these processes.