In July 2013 the number of petitions advertised was just 350. This compares with a monthly average of between 500-700 during last year. So the numbers of petitions are still declining. Some liquidations are up but these are mostly creditors voluntary liquidations which can't really occur after a petition has been advertised. Compulsory liquidations are still falling which would make sense as a winding up petitions is followed by a winding up order that puts the company into compulsory liquidation.However, HMRC are now less inclined to send warnings and are more frequently using distraint. So if HMRC threaten any kind of legal action for the recovery of any tax debts it will either be distraint or a winding up petition. Distraint can be particularly awkward as they will turn up to your registered office and demand goods be taken away in 7 days if the debt is not paid. In many cases, companies have their registered office at the home and anything belonging to the company, such as car, could be their target.If you get a visit from HMRC field officer then call us and we will see if we can help. In many cases it is not too late to save the business.
Winding up petitions in July fall again but distraint is on the rise.
5 August 2013