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
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.