FAQs

Your Questions Answered

Financial pressure can create uncertainty and urgent questions.

Below are answers to some of the most common concerns directors have when facing HMRC action or a winding-up petition.

What is a HMRC winding-up petition?

A winding-up petition is a legal action taken by HM Revenue & Customs when they believe your company cannot pay its tax debts. If the situation isn’t resolved, the court may order your company to be closed and placed into compulsory liquidation.

How serious is a winding-up petition?

It is very serious, but it’s important to know that you still have options. Acting quickly can make a significant difference, and many businesses are able to resolve the situation with the right support.

How much time do I have to respond?

There is usually a short window between receiving the petition and the court hearing. It’s important to seek advice immediately so you can understand your options and take action before the situation escalates or becomes public.

Will my company bank account be frozen?

In many cases, banks freeze company accounts once they become aware of a winding-up petition. This can make trading difficult, which is why urgent advice and action are essential.

Can a winding-up petition be stopped?

Yes, in some situations it may be possible to:

• Pay the debt in full

• Negotiate a payment arrangement

• Dispute the petition if appropriate

• Explore restructuring or formal recovery options

The best approach depends on your circumstances, and early action gives you more choices.

Can my company continue trading after receiving a petition?

You may be able to continue trading initially, but there are significant risks and restrictions. It’s important to get guidance quickly so you don’t unintentionally make the situation worse.

Will the petition become public?

Yes. If the situation isn’t resolved quickly, the petition may be advertised publicly, which can affect your company’s reputation, suppliers, and banking. Acting early can sometimes prevent this.

What happens if the petition goes ahead?

If the court grants a winding-up order, your company will be placed into compulsory liquidation. A liquidator will be appointed, and the business will cease trading. Speaking to an adviser early can help you explore alternatives before it reaches this stage.

Am I personally liable as a director?

This depends on how your business is structured and how the situation has developed. In some cases, directors may face personal risks, but getting advice early can help protect you and clarify your position.

What should I do if I have just received a winding-up petition?

Try not to panic — but don’t delay. Gather any correspondence from HMRC and seek professional advice as soon as possible. The earlier you act, the more options you’ll have.

Can you speak to HMRC on my behalf?

Yes. We can communicate directly with HMRC, explain your situation, and work towards a realistic and practical solution that reduces pressure on you.

Is the consultation confidential?

Absolutely. We understand how sensitive this situation is. All conversations are completely confidential, supportive, and without judgement.

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