Bankruptcy · Insolvency & Dispute Resolution
Expert bankruptcy defence lawyer. HMRC is one of the most frequent petitioning creditors in the UK. If your company owes unpaid VAT, PAYE, Corporation Tax, or other liabilities, urgent action may be needed to protect the business.
HMRC is one of the most frequent petitioning creditors in the UK. If your company owes unpaid VAT, PAYE, Corporation Tax, or other liabilities, they can issue a winding-up petition to recover the debt.
Once the petition is issued, the risk to your business is immediate: bank accounts can be frozen, your reputation can suffer serious damage, and you could lose control of your company altogether.
Unlike many commercial creditors, HMRC follows strict enforcement protocols but can still act quickly if debts remain unpaid. In some cases, HMRC will issue a petition even while a time-to-pay arrangement or dispute is ongoing.
HMRC often moves to advertise the petition soon after it is issued, which can trigger serious banking, trading and reputational consequences.
The High Court may dismiss or restrain an HMRC petition where there is a genuine dispute, a valid cross-claim, or where the petition is being used improperly.
The original page identifies three common categories of defence. These have been separated into clear cards so directors can quickly understand where urgent legal arguments may arise.
The petition may be challenged where the debt is genuinely disputed.
A valid cross-claim may justify urgent action against the petition.
The court may intervene if HMRC has ignored a legitimate dispute or is acting prematurely.
Even if the underlying tax dispute is later resolved in your favour, the damage caused during the petition process can be permanent.
Making it impossible to trade, pay suppliers, pay staff or operate the company normally.
Clients, suppliers and commercial partners may react quickly once they become aware of the petition.
A winding-up order can result in directors losing control of the business and the company being placed into liquidation.
The current WP page sets out a four-stage approach. This has been converted into a clear process section.
Gurvir examines the petition, HMRC’s evidence, and your company’s tax position.
Accounting records, correspondence, tax documents and dispute evidence are collated quickly.
Where appropriate, action may be taken to dismiss, adjourn or restrain the petition.
Where appropriate, HMRC may be engaged to agree time-to-pay arrangements or settlement terms.
HMRC winding-up petitions often connect with urgent applications to keep the company trading, preserve bank account access, or prevent petition advertisement.
Where a petition has affected bank accounts or payments, a validation order may be required to permit transactions.
Urgent advice where a petition is threatened and there are grounds to restrain presentation.
Urgent applications to protect banking, trading relationships and reputation once a petition has been issued.
Specialist knowledge of HMRC’s litigation and enforcement processes.
Experience with urgent applications in the Chancery Division and the Insolvency and Companies List.
Ability to combine legal defence strategies with practical negotiation to reduce or settle tax liabilities.
Rapid response in urgent cases, including injunctions to prevent the petition being advertised.
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Call for a free confidential consultation. If HMRC has issued a winding-up petition against your company, do not wait. The consequences of delay can be immediate and irreversible.
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Bankruptcy, insolvency and dispute resolution information led by Gurvir Birang.
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Gurvir Birang is a practising solicitor, founder, litigator and bankruptcy expert, authorised and regulated by the SRA. Gurvir Birang practices from Spencer West LLP. Spencer West LLP is authorised and regulated by the SRA.
West London Law is a trading name of West London Law Limited, registered in England and Wales (company number 06776937).
West London Law was set up in 2003 and became non-regulated in 2020 and is no longer a firm of solicitors. This website is for marketing purposes only.
Disclaimer. Information on this website does not constitute legal advice and should not be relied upon as it does not provide a complete statement of the law. Specific legal advice should be sought and tailored to your particular circumstances.