Bankruptcy · Insolvency & Dispute Resolution

HMRC winding-up petition defence

Defending HMRC Winding Up Petitions

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 petition focus
Focused advice for companies and directors facing HMRC winding-up petitions, tax debt enforcement and urgent insolvency risk.
Urgent advertisement risk
Clear guidance on petition deadlines, evidence, injunction options and steps to prevent serious banking and trading consequences.
Specialist insolvency judgment
Advice led by Gurvir Birang, a Chambers-ranked restructuring and insolvency solicitor with commercial litigation experience.
When HMRC threatens to close your company

Time is critical.

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.

Defending HMRC winding-up petitions

We can protect your assets and your company position.

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.

Key point

HMRC petitions move quickly

HMRC often moves to advertise the petition soon after it is issued, which can trigger serious banking, trading and reputational consequences.

High evidential standards usually apply because HMRC will often have detailed records of the tax liabilities claimed. Limited negotiation may be available once a petition has been issued, so delaying action can reduce your options.
Key point

The High Court may intervene

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.

Gurvir works to identify every available defence and will act urgently to protect your position before the petition causes avoidable damage.

When can an HMRC petition be dismissed or restrained?

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.

Ground 1

The debt is genuinely disputed

The petition may be challenged where the debt is genuinely disputed.

Examples include accounting errors, misapplied payments, incorrect assessments, or other issues affecting the amount claimed by HMRC.
Ground 2

You have a valid cross-claim

A valid cross-claim may justify urgent action against the petition.

This may include overpaid taxes, HMRC errors in other periods, or related claims that affect whether the petition should proceed.
Ground 3

The petition is an abuse of process

The court may intervene if HMRC has ignored a legitimate dispute or is acting prematurely.

This can be especially important where the petition is being used as pressure in circumstances where insolvency proceedings are not the proper route.

If you do not act quickly, the damage can be immediate.

Even if the underlying tax dispute is later resolved in your favour, the damage caused during the petition process can be permanent.

Frozen bank accounts

Making it impossible to trade, pay suppliers, pay staff or operate the company normally.

Loss of contracts and goodwill

Clients, suppliers and commercial partners may react quickly once they become aware of the petition.

Compulsory liquidation

A winding-up order can result in directors losing control of the business and the company being placed into liquidation.

Important: Delay can reduce the available options. Early advice may allow the company to seek dismissal, adjournment, restraint of the petition, restraint of advertisement, negotiation, settlement, or a validation order where appropriate.

How Gurvir approaches HMRC winding-up petition defence

The current WP page sets out a four-stage approach. This has been converted into a clear process section.

Step 1

Immediate review

Gurvir examines the petition, HMRC’s evidence, and your company’s tax position.

Step 2

Evidence gathering

Accounting records, correspondence, tax documents and dispute evidence are collated quickly.

Step 3

Urgent defence action

Where appropriate, action may be taken to dismiss, adjourn or restrain the petition.

Step 4

Negotiation

Where appropriate, HMRC may be engaged to agree time-to-pay arrangements or settlement terms.

Why directors choose Gurvir Birang

Specialist representation for HMRC enforcement and urgent insolvency litigation.

HMRC enforcement experience

Specialist knowledge of HMRC’s litigation and enforcement processes.

Including petition procedure, tax debt disputes, settlement pressure, and urgent applications where the company faces liquidation risk.

High Court familiarity

Experience with urgent applications in the Chancery Division and the Insolvency and Companies List.

This supports practical navigation of urgent listings, procedural requirements and evidence preparation.

Legal defence and negotiation

Ability to combine legal defence strategies with practical negotiation to reduce or settle tax liabilities.

Where appropriate, this may include time-to-pay arrangements, settlement terms, adjournments, or opposition to the petition.

Rapid response

Rapid response in urgent cases, including injunctions to prevent the petition being advertised.

Urgency matters because advertisement can trigger bank account, contract and reputation damage before the underlying dispute is resolved.
First impression, our clients

Client comments

“West London Law’s expertise helped us navigate a tough financial situation with confidence and clarity.”

“Thanks to West London Law, their advice had a tremendous impact on my financial circumstances.”

“West London Law guided us through the bankruptcy process smoothly, securing the best possible outcome for our future.”

“With their strategic advice and dedication, we regained financial stability.”

Need bankruptcy advice?

Expert Advisors

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.

Telephone

0207 889 0100

Address

167-169 Great Portland Street, 5th Floor, London W1W 5PF

Hours

Monday to Friday,
9am to 5pm

West London Law

Bankruptcy, insolvency and dispute resolution information led by Gurvir Birang.

Call 0207 889 0100 for a free consultation today.

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West London Law Limited does not provide reserved services to the public.

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.