Will HMRC allow a company to be liquidated through a voluntary route after they have presented a winding-up petition?

  • One of the few choices available to HMRC to collect a debt is to force a company into liquidation through the courts
  • They will make it clear to a company that the winding-up process will begin if payment is not made. This is the best time to consider rescue and closure options
  • Once HMRC has asked the court to liquidate a company – known as presenting a petition to court, then HMRC will have incurred a cost to pay the court
  • Some of HMRC’s costs will be refunded by the court if a company does not go into compulsory liquidation
  • HMRC will consider a request for a company to go into voluntary liquidation even after a petition has been received by the court
  • HMRC will require that their legal costs are refunded
  • Voluntary liquidation may not be the only solution available for the company. All company rescue options should be considered
  • Speed of movement by a company is crucial before the winding up petition is advertised, and the company bank accounts are frozen

Insider Tips:

It’s not uncommon that the reasons that a company fell behind with payments to HMRC have been resolved. Old debts may be able to be repaid from future profits of a company. There are choices to handle this situation.