HMRC Winding-up Petition against Salford Red Devils

Salford Red Devils, a well-known Rugby League club, is facing serious financial difficulties following the issue of a winding-up petition by HM Revenue and Customs (HMRC). This development underlines the importance of obtaining urgent legal advice from experienced insolvency solicitors when dealing with HMRC tax disputes and enforcement proceedings.

Salford City Reds (2013) Limited, the company operating the Salford Red Devils Rugby League club, was incorporated on 23 January 2013 having its registered office at Salford City Stadium, 1 Stadium Way, Eccles, M30 7EY. In 2023, the club achieved a seventh-place finish in the Super League. However, the 2025 season has seen a sharp decline in performance, with the team positioned at the bottom of the league after securing only one win from fifteen games. This has coincided with a series of worsening financial issues and ultimately a Winding-up Petition by HMRC.

At LEXLAW, we specialise in defending companies against HMRC winding-up petitions. Our team of expert insolvency lawyers provides strategic advice and legal representation to protect businesses from compulsory liquidation and other enforcement measures.

HMRC Winding-up Petition against Salford City Reds (2013) Limited

Key Details of the Winding-up Petition

On 14 May 2025, HMRC issued a formal winding-up petition against Salford City Reds (2013) Limited. The petition was filed in the High Court under case number CR-2025-003312. This is not the first petition against the club; court records show that twelve winding-up petitions have been filed against the company since 2016, with most initiated by HMRC.

Reasons for the HMRC’s Winding-up Petition

The winding-up petition has been filed due to substantial unpaid tax debts. It is reported that the club owes HMRC between £500,000 and £600,000. These liabilities are believed to relate to unpaid VAT, PAYE, and other corporation tax obligations.

Other financial problems have compounded the situation:

• The club has faced repeated delays in paying staff and player wages.
• The chief executive, Chris Irwin, resigned in May 2025.
• Several senior players have left due to uncertainty over contracts and wages.

What is a HMRC Winding-Up Petition?

An HMRC winding-up petition is a formal legal request made by HM Revenue & Customs (HMRC) to the High Court, seeking the liquidation of a company that is unable to settle its tax debts, which are unpaid taxes or other liabilities. If the petition is successful, the court issues a winding-up order, leading to the liquidation of the company’s assets to pay off its creditors. However, the court may dismiss the petition if it determines that the company is not insolvent or at risk of liquidation.

Our expert team of HMRC winding-up solicitors play a crucial role in managing these complex cases. We offer expert legal advice on how to handle creditor disputes, negotiate settlements with HMRC, and provide representation in court proceedings. We help businesses explore options for financial restructuring to avoid forced liquidation, protect the company’s future, and resolve tax disputes efficiently.

At LEXLAW, our team of expert solicitors, based in the legal heart of London’s historic Middle Temple Chambers, offers nationwide representation for HMRC winding-up petitions. We prepare strong grounds of opposition, witness statements, and provide tailored legal solutions to navigate the complexities of winding-up hearings. Whether it’s preparing for court or negotiating with HMRC, we ensure the best legal strategies to protect your business from liquidation.

When does HMRC file a Winding-up Petition?

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 HMRC 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.

• Pay the Debt in Full

Paying the debt in full may reduce the risk of the petition being advertised, though this is not guaranteed. Immediate legal advice is crucial to manage negotiations. You should immediately get urgent advice and appoint experienced winding-up solicitors to manage the negotiations.

• Dispute the Debt

If there’s a genuine dispute over the debt, such as the amount owed, the company can provide evidence to the court. Legal advice is essential to notify the petitioning creditor. Seeking legal advice and notifying the petitioning creditor of the dispute is crucial.

• Agree to a Company Voluntary Arrangement (CVA)

A CVA allows for a repayment plan and can stop the petition. If appropriate, solicitors can refer the company to CVA providers. If we review your case in an initial advice conference, and it is appropriate, then we can refer you to a trustworthy leading provider of CVAs.

• Negotiate with Creditors

Negotiating with creditors may prevent the petition from proceeding. Offering repayment terms can lead to an agreement that avoids liquidation.

• Consider Administration or Voluntary Liquidation

If necessary, entering administration or voluntary liquidation can be a solution to manage financial difficulties and address the petition.

• Request an Adjournment

A company can request an adjournment to delay the hearing, providing time to find alternative solutions. Solicitors can assist in securing adjournments effectively. We are experts in obtaining adjournments and have several methods in order to secure adjournments.

Adjournment of HMRC Winding-Up Petition against Salford Red Devils

The High Court has adjourned the hearing of winding-up petition against Salford Red Devils until 3 September 2025 after HMRC accepted proof of funding. This temporary reprieve is based on the club’s claim that a bridging loan will shortly be received. The proposed bridging loan is reported to be worth £3 million. It is intended to:

• Clear all outstanding tax debts to HMRC.
• Satisfy any financial obligations to the Rugby Football League.
• Remove salary cap restrictions imposed by the RFL.
• Unlock further funding from a hedge fund connected to the club’s new owners.

The loan is expected to arrive within two to three weeks. It is likely to be secured against club assets and shall be used to pay salaries.

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 Salford Red Devils—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 or similar legal challenges, our experienced solicitor and barrister legal team 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, financial difficulties, or other corporate challenges, our elite lawyers can strategically guide legal proceedings. We specialise in litigation, providing tailored solutions to meet client need.

We guide our clients through the minefield of complex winding-up rules and procedure and manage the entire process. We have years of experience in negotiating with HMRC petitions as well as creditor, shareholder or director petitioners. We regularly represent our client companies in the Companies Court and successfully obtain adjournments (i.e. to allow time to negotiate and settle or to defend a winding up petition) and injunctive relief even against HMRC. We can help companies avoid having bank accounts frozen by preventing advertisement of winding up petition notices or (if already advertised in the London Gazette) by obtaining a validation order from the Court to unfreeze the company’s bank accounts. We have a proven track record of fighting for our clients and we know exactly how to get the best results for your business.