Begbies Traynor Group

HMRC Unpaid Debt and 7-Day Winding Up Threat

Date Published: 16/02/2020

Example of 7-Day Winding Up Warning Letter from HMRC

HMRC Unpaid Debt Statement

What does the letter say?

“Unpaid debt £X including interest to date. The amount shown above detailed in the attached statement of liabilities remains unpaid. If you do not make payment, in full, within 7 days of the date of this letter I will instruct the solicitor of HM Revenue & Customs to present a petition to wind up the company, without further warning, to the High Court, on the grounds that the company is unable to pay its debts.

You should be aware that once a petition is filed with the court, it must be advertised in the London/Belfast Gazette not less than 7 business days after service on the company. This may cause the company’s bank accounts to be frozen and enable any other creditors to support the petition.

"No further warning will be given. If the company does not pay, the next action will be the filing of the petition."

What does this letter mean?

A company director would receive this letter from HMRC following a prolonged period of failure to meet liabilities. By sending this seven-day warning of a winding up petition, HMRC is essentially threatening to begin the liquidation process of your business in a week’s time unless the company can pay its debts.

In other words, there is no time to waste if you see a future for your company. If you are unable to pay the debts owed, HMRC may be open to negotiation on a repayment schedule but you will have to negotiate with them and attempt to come to an arrangement. Begbies Traynor’s experienced business rescue advisors can help in this area and regularly set up Time To Pay arrangements with our clients and HMRC.

Time is of the essence and your company will be liquidated if you take no action. For expert advice, contact Begbies Traynor and a licensed insolvency practitioner can offer a free initial consultation in your regional area.

About The Author

Meet the Team

Jonathan was a founding director of Cooper Williamson which was acquired by Begbies Traynor in October 2013. 

Jonathan was involved in the inception and continued with the development of the "Real Business Rescue" website, which provides advice and assistance for the directors of limited companies which are experiencing various degrees of financial distress throughout the UK. 

Jonathan is a member of the Insolvency Practitioners Association MIPA and is a Member of The Association of Business Recovery Professionals MABRP.

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