--- title: "HMRC files Winding-Up Petition against Bank of London over unpaid tax" url: https://windinguppetitionsolicitors.co.uk/hmrc-files-winding-up-petition-against-bank-of-london-over-unpaid-tax/ date: 2024-09-16 modified: 2026-06-02 author: "Shumaim Rizvi" description: "HMRC issues a winding-up petition against the Bank of London. HMRC's petition demonstrates the steps the Revenue will likely action should a company not pay its tax debts in time. Please seek our advice on defending enforcement proceedings brought by HMRC." categories: - "Business and Property Courts" - "Business Restructure" - "Companies Court" - "Companies Court Winding Up List" - "Company Voluntary Arrangement" - "Debt Owed" - "Hearing representation" - "High Court" - "HMRC" - "HMRC Petitions" - "Injunctions" - "Insolvency" - "Knowhow" - "Legal" - "News" - "Statutory Demand" - "Winding up order" - "Winding Up Procedure" - "winding up searches" - "Winding-Up Petitions" tags: - "Companies Court" - "High Profile Winding-up Petition" - "HMRC" - "HMRC Enforcement" - "HMRC Winding-Up Petition" - "Insolvency" - "Unpaid tax" - "Winding Up List" - "Winding Up Order" - "Winding Up Petition" - "Winding-Up" image: https://windinguppetitionsolicitors.co.uk/wp-content/uploads/HMRC-Petition-Injunction-Granted-In-Spite-of-1.5m-Tax-Debt-1-1024x579.jpg word_count: 1081 --- # HMRC files Winding-Up Petition against Bank of London over unpaid tax [The Bank of London](https://thebankoflondon.com/), a clearing bank with Peter Mandelson on its board and valued at $1.1 billion, is defending a [winding-up petition](https://windinguppetitionsolicitors.co.uk/insolvency-lawyers-london/winding-up-petition-meaning/) issued by [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) ([His Majesty’s Revenue & Customs](https://en.wikipedia.org/wiki/HM_Revenue_and_Customs)). The Revenue commenced insolvency proceedings over unpaid tax debts, although the Bank likely intends to oppose the winding-up petition on the basis that the debt has since been paid. Given that the Bank state the debt has now been repaid, it is likely the parties will reach an agreement to [set aside the petition](https://lexlaw.co.uk/hmrc-debt-enforcement-defence-statutory-demand-winding-up-peititon-solicitor-london/) (with the Bank potentially liable for HMRC's costs of issuing the winding-up petition). ## Does HMRC issue winding-up petitions regularly? Yes, if other methods for repaying the [tax debt](https://taxdisputes.co.uk/hmrc-enforcement-action/) are unsuccessful. If [HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs) are the petitioning creditor, their official position is that filing a winding-up petition is seen as a last resort, and would prefer to provide directors who are making every effort to pay their tax liability [Time To Pay (TTP)](https://taxdisputes.co.uk/2023/10/obtaining-hmrc-time-to-pay-agreements-ttp/). If a Time to Pay arrangement cannot be reached, HMRC would then ordinarily seek to use its [powers of distraint](https://www.gov.uk/if-you-dont-pay-your-tax-bill/taking-control-of-goods) to take control of goods. In most cases, only if these attempts are unsuccessful will HMRC seek to close a company down. ## What is a Time to Pay agreement with HMRC? [HMRC’s Time to Pay agreements](https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement) can be a valuable lifeline for businesses facing financial difficulties, especially in turbulent economic times. The key is to approach HMRC with a clear rationale, be prepared to negotiate terms, and demonstrate a firm commitment to meeting your financial obligations. Engaging with HMRC early, being transparent about your financial situation, and presenting a well-thought-out plan can build a positive working relationship and increase the likelihood of reaching a mutually beneficial agreement and [our firm](https://taxdisputes.co.uk/) can help you do that. ## What happens to a business if it is wound up? Winding-up proceedings should be taken very seriously by company directors. The presentation of a [winding up petition](https://windinguppetitionsolicitors.co.uk/opposing-a-winding-up-petition/) is the first stage of compulsory liquidation. It means that the petitioner (creditor) is attempting to have the company compulsorily shut down.   If a winding up petition is ordered by the Court it will ordinarily signal the beginning of the end for the company. ## What happens when a company fails to defend a winding-up petition? If a company is subject to a winding-up order then: - the company's assets are sold by a liquidator; - any legal disputes may be settled; - the company's liquidator collects money it is owed from it's debtors; and - funds are paid to the petitioning creditor and any other creditors. ## Can HMRC issue a winding-up petition if £750 is owed? HMRC can apply for compulsory liquidation of a company if more than £750 is owed. The Commissioners must also prove that the company does not have the funds to pay the tax debt. The unpaid tax could be: - VAT returns; - Unpaid VAT assessments; - PAYE payments; - Employer’s National Insurance Contributions; or - Corporation tax. ## How can a company defend a winding-up petition? To oppose a winding-up petition, a company must file an affidavit in court at least 7 days before the hearing. The affidavit should also be sent to the petitioning creditor (which could be HMRC). Directors can attend the hearing to oppose the petition and ought to engage specialist solicitors and counsel for representation. ### A. Pay the Debt in Full Making full payment to the creditor(s), which could be HMRC, may reduce the risk that the winding-up petition is advertised but that is not guaranteed. [You should immediately get urgent advice and appoint experienced winding-up solicitors to manage the negotiations](https://windinguppetitionsolicitors.co.uk/contact-us/). ### B. Dispute the Debt If there is a genuine disagreement on whether the debt is owed, for example the outstanding amount, or the right to set off the debt, the company can defend the petition by providing sufficient evidence to the court. [Seeking legal advice and notifying the petitioning creditor of the dispute is crucial.](https://windinguppetitionsolicitors.co.uk/contact-us/)  ### C. Agree to a Company Voluntary Arrangement (CVA) Entering into a CVA with the creditor(s) can prevent the winding-up petition from proceeding. A CVA is a legally binding agreement that outlines repayment terms over an agreed period. If we [review your case in an initial advice conference](https://windinguppetitionsolicitors.co.uk/legal-case-assessment/), and it is appropriate, then we can refer you to a trustworthy leading provider of CVAs. ### D. Negotiate with Creditors Engage in negotiations with the creditor(s) to persuade them not to advertise the winding-up petition. Demonstrating the company’s capability to repay its debts and discussing repayment options may lead to a mutually beneficial agreement. ### E. Consider Administration or Voluntary Liquidation If the company is facing financial difficulties, entering into administration may help rescue the business. Voluntary liquidation can also be an option to address the effects of a winding-up petition. ### F. Request an Adjournment To prevent the winding-up petition from becoming a winding-up order, a company can request an adjournment or cancellation of the hearing. This can provide additional time to explore alternative solutions. [We are experts in obtaining adjournments and have several methods in order to secure adjournments.](https://windinguppetitionsolicitors.co.uk/obtaining-an-adjournment-adjourning-winding-up-petition-lawyers-london/) ## Expert London Winding up Petition Lawyers At LEXLAW, we specialise in tax disputes, winding-up petitions, and civil litigation. If you or your business are facing issues similar to those encountered by the Bank of London—whether it's dealing with HMRC petitions, tax litigation against HMRC, or negotiation on your behalf—our experienced team is here to guide you through the complexities. We offer tailored advice to help protect your business and ensure compliance with legal requirements. ## Expert Legal Representation in HMRC Petition Defence If your company is facing a [winding-up petition](https://lexlaw.co.uk/practice-areas/winding-up-petitions-solicitors-london/) or similar legal challenges, [our experienced solicitor and barrister legal team](https://lexlaw.co.uk/our-people/) is here to assist. We offer comprehensive services for both issuing and defending winding-up petitions, ensuring that your interests are protected throughout the legal process. Whether you’re dealing with [tax disputes](https://taxdisputes.co.uk/), financial difficulties, or other corporate challenges, our elite lawyers can strategically guide legal proceedings. We specialise in [litigation](https://lexlaw.co.uk/litigation-solicitors/), providing tailored solutions to meet client need. We guide our clients through the minefield of complex [winding-up rules and procedure](https://windinguppetitionsolicitors.co.uk/winding-up-procedure/) and manage the entire process. We have [years of experience](https://windinguppetitionsolicitors.co.uk/expert-advice/) in negotiating with HMRC petitions as well as creditor, shareholder or director petitioners. We regularly represent our client companies in the [Companies Court](https://windinguppetitionsolicitors.co.uk/court-contact-details/) and successfully [obtain adjournments](https://windinguppetitionsolicitors.co.uk/obtaining-an-adjournment-adjourning-winding-up-petition-lawyers-london/) (i.e. to allow time to negotiate and settle or to [defend a winding up petition](https://windinguppetitionsolicitors.co.uk/opposing-a-winding-up-petition/)) and [injunctive relief even against HMRC](https://lexlaw.co.uk/solicitors-london/case-study-abusive-hmrc-winding-up-petition-defeated/). We can help companies avoid having bank accounts frozen by [preventing advertisement of winding up petition](https://windinguppetitionsolicitors.co.uk/restraining-injunctions-against-winding-up-petitions-and-advertisements/) notices or (if already advertised in the [London Gazette](https://www.thegazette.co.uk/)) by obtaining a [validation order](https://windinguppetitionsolicitors.co.uk/validation-order/) from the Court to [unfreeze the company’s bank accounts](https://windinguppetitionsolicitors.co.uk/practice-note-on-validation-orders-lawyers-london/). We have a proven track record of fighting for our clients and we know exactly how to get the [best results](https://windinguppetitionsolicitors.co.uk/success/) for your business.