Substantial Increase in Winding Up Petitions at Companies Court

Post-pandemic, HMRC and other creditors are becoming far more aggressive in recovering unpaid taxes via the winding-up petition process. Our team has noted that the number of hearings in the list has grown remarkably since 31 March 2022 when Coronavirus legislation designed to protect companies from petitions ceased to have effect.

Surge in UK Winding-up Petitions

There has been an over 80% increase in HMRC winding-up petitions advertised in the London Gazette from August 2022 – September 2022 and an around 15,000% increase since the start of 2022.

Petitions are widely viewed as a last resort to claim back monies owed or to enforce debts including HMRC and other court and tribunal judgment debts not paid.

It is clear that as businesses return to normality post-COVID19, unpaid debts are being clawed back from debtors on an increasingly aggressive scale and that HMRC are also now resuming their role of eliminating ‘zombie companies’ which are building up unsettled UK tax debt obligations.

Winding-up Threats / Statutory Demands

If petitions are presented and advertised a company’s bank accounts will be frozen by their bank(s) and the Company will need to take legal advice and arrange Companies Court representation and possibly to make a validation order application.

Directors conduct including overdrawn loan accounts will be examined closely by the Official Receiver or an insolvency practitioner. It is possible to seek to set aside HMRC winding-up petitions.

Business owners receiving statutory demands or otherwise threatened with a petition for example via a winding-up letter before action should take immediate legal advice to try and prevent a petition being presented (given the severity of the potential consequences).

We are experts in defending aggressive debt recovery winding-up petitions.

ACT PROMPTLY IN RELATION TO DEBT CLAIMS

Please note that if you have been served a statutory demand or winding-up petition or warned about your file being passed from HMRC’s Debt Management to HMRC’s Enforcement or Solicitor’s Office do not delay in taking legal advice. Your matter can be handled more effectively the sooner you obtain legal advice and representation.

Check Your Insolvency Case ✔

We analyse your winding-up petition prospects. We deliver strategic legal advice at your first meeting. We get optimal legal results. Want a first or second opinion on your case? Click below or call our lawyers in London on ☎ 02071830529

WARNING – OBTAIN SPECIFIC GUIDANCE & ADVICE

The information on this website is not legal advice; you should always obtain specific advice on the circumstances of your case. Our Winding-up Petition Solicitors & Barristers provide specialist legal advice based on decades of expertise. Click here or call +442071830529 to get in touch. For regulatory reasons we do not take on low value cases nor provide free legal advice, information or guidance and our team cannot answer questions from non-clients.

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