I have received a 7 day warning letter from HMRC threatening a winding up petition. What now?"
What is HMRC likely to do now? They have a number of aggressive debt collection tools available:
- Issue a County Court Summons to get a County Court Judgment
- Send in a Revenue officer from their Field Force or send a Bailiff after a Notice of Enforcement
- Issue a winding up petition following the letter
Please click on the link about the HMRC 7 day warning letter
Want to avoid all of this? There is a great solution for your company's problem called CVA or Company Voluntary Arrangement.
A CVA is simply a deal between the insolvent company and its creditors; this deal places a legal ringfence, called a moratorium, around the company and stops creditors attacking the company.
It allows a viable but struggling company to repay some, or all, of its historic debts out of future profits, over a period of time to be agreed.
Directors stay in control of the company with KSA providing support. It can stop legal actions like HMRC actions or winding up petitions, if you use a quality, experienced advisor.
Further useful guides to CVA:
"Complete Expert's Guide" to the Company voluntary arrangement. Click for Keith Steven's unique, hugely detailed and comprehensive guide. All of Company Rescue's CVA guides and more in one 120 page PDF.
Company Voluntary Arrangement Detailed Guide - all you need to know about CVAs from framing the deal through to creditors' votes at the creditors meeting unique to KSA Group.
So what can HMRC do to collect its tax arrears?
They can issue:
- County Court Summons
- County Court Judgement (CCJ)
- Bailiff actions or warrant
- Notice of enforcement
- Winding Up Petition
Visit our page on creditors legal actions for definitions and advice for all the above.
Do you want DIRECT, BESPOKE advice for your business? Call us on 01289 309431 or 0800 9700539.