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Advice on Closing Down A Company With Debt – Including HMRC (Tax) Debt

Firstly a key bit of terminology: If a company cannot pay those who it owes money to (including tax) then the company is said to be “insolvent“.

We do understand that if your company is insolvent that it’s no bundle of joy!

What we can guarantee you is advice that is geared to your unique position, which is understanding, patient and above all interested to understand how your situation has occurred and what difficulties that that has led to.

Many company directors ask what happens to debts of a company if their company is liquidated as in insolvent company and especially what happens to HMRC Tax debt.  There are some key things to be aware of in answer to this question:

  • The normal position is that debts are a company do not fall on to the the company directors or shareholders
  • An individual may have given a personal committment (guarantee) to pay a particular debt of a company personally
  • HMRC has powers in circumstances where a director has acted illegally to pursue a company director for taxes due
  • If a director has acted without regard to the interest of their company and those associated with it then there is a risk that they may be asked to pay back money to the company

The postition and each company is unique and we would welcome the chance to discuss the pro and cons of insolvent liquidation with you.

Liquidation may not be the only option;  we will discuss all of the options with you.

We appreciate that when your company needs to review insolvent liquidation options it can be a very difficult and complicated time for all involved. That’s why getting all the company insolvency advice your company needs right now is more crucial than ever.

Protecting company directors and shareholders from any legal proceedings remains at the heart of everything we do here at

If you are a limited company that has become insolvent then our Creditors’ Voluntary Liquidation service may be what you’re looking for.

You can find out more about our industry leading CVL service here:

We also offer a range of other insolvency liquidation services that based on your individual circumstances, may be more suitable. Please contact us today if you are unsure what level of liquidation you require.

You can find out more about our Insolvent Liquidation options here:

How We Can help You

We’re a long-standing firm of insolvency practitioners with over 40 years’ in business, delivering quality services to SMEs across the UK. If your company needs low cost insolvency advice, we have the qualified teams in place nationwide, all committed to providing the guidance you require right now.

Working with us gives you access to;

  • Qualified and experienced insolvency liquidators backed up by trained and responsive staff.
  • Free initial consultation by phone or face-to-face meeting with a low-cost insolvency solution that meets your exact needs.
  • Most Case managers qualified to CPI (Certificate of Proficiency in Insolvency) level as a minimum, who regularly update their knowledge and skills to meet today’s legal and professional standards.
  • Experts who will explore all the issues and work through the options your business is currently faced with and find the solutions that work for your individual circumstances.

With offices across the UK and low fees, we’re the insolvent experts ready to lend a helping hand.


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