It has been reported that HMRC have are issuing more and more winding up petitions for unpaid tax. In 2015 there were 3,484 as opposed to 3,074 in 2014.
HMRC can be very aggressive with their debt collection and it is imperative that businesses take steps to avoid winding up petitions being issued. A winding up petition is a very powerful debt collection tool. Once the winding up petition has been issued any dispositions of property (including payments to suppliers) are void unless you obtain an order from the court. This means that directors can be held to be personally liable once the petition has been issued.
Winding up petitions are also a class action which means that if you pay the creditor who issues the petition off then another creditor can “piggy back” on the petition.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible and ideally prior to the issuing of the winding up petition.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.