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HMRC want to liquidate my company – what does this mean?


When HMRC are threatening to put your company into liquidation it will mean that they have to apply for a winding up petition which will force the company into compulsory liquidation.

A winding up petition is the severest legal action which can be made by any creditor. When one is issued it means that HMRC are serious about recovering the company’s debt, even if it results in people losing their jobs and the company no longer being in business.

As soon as a winding up petition is issued, the company can no longer:

  • Dispose or sell any of its assets for the company If a sale is made when a winding up order is granted the sale can be reversed.
  • The company cannot enter administration voluntarily without a court approval.

What happens if I want to dispute the winding up petition?

If the directors believe the petition is unfair and you would like to dispute it – you need to seek immediate legal advice. It might be possible to stop the advertisement of the petition being published in the Gazette if there is a dispute about the claim made.

What’s involved with a winding up petition advert?

Before an advertisement is published in the London Gazette, the creditor must allow seven days following the petition at the company’s registered office.  The advertisement must be published seven days before the date hearing.

Following the advertisement of the winding up petition

  • Freezing of company’s assets and bank account.
  • Court hearing
  • Compulsory liquidation and investigation
  • Directors may become personally liable for the debts of the company. 

If you have been issued with a Winding Up Petition, we will advise you on the most cost effective solution for your company. We will listen and work with you to establish the right outcome.

To arrange a meeting to discuss liquidation or your company’s situation call us on: 01527 839920 or email us on: tim@timonthyjamespartnership.co.uk


Added: 27 Oct 2016 14:47


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The Timothy James Partnership

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Insolvency Practitioners Association
About Us


We are an independent firm of specialist Licensed Insolvency Practitioners located in Bromsgrove, Worcestershire.

At The Timothy James Partnership, we work very closely with local businesses and professionals, providing guidance on formal insolvency procedures and advice on restructuring businesses.

We recognise that at times, companies find themselves in difficult financial circumstances and our aim is to provide practical solutions in these situations.