If you have received a winding-upwinding up petition, particularly from HMRC, your company is facing the most serious legal action a creditor can take. Without urgent action, it ends in compulsory liquidation and the permanent closure of your business.
We are not solicitors. We are licensed insolvency practitioners and turnaround specialists who work with directors every day to stop petitions, buy time and find a way forward. In many cases, we can do things solicitors simply cannot.
Call us now for a free, confidential assessment on 0800 970039 / 07833 240747
Time is the single most important factor when a winding-up petition has been served. Most directors lose critical options simply by waiting too long to seek help.
Here is what the clock looks like from the moment a petition is served:
| Stage | Timeframe | Impact / Priority |
|---|---|---|
| Petition served at your registered office | Day 0 |
Critical Action Required The official countdown starts. Immediate specialist legal advice is required to map out your options. |
| Creditor can advertise in the London Gazette | After 7 working days |
High Risk Public advertisement alerts banks, customers, suppliers, and other creditors, severely damaging your trading position. |
| Bank freezes company accounts | Within days of service (often before Gazette publication) |
Severe Operational Risk Disrupts daily business operations entirely. Frozen accounts make it impossible to process supplier payments or pay staff. |
| Court hearing date | 8 to 12 weeks from petition issue |
Final Countdown Your last opportunity to present a valid legal defense or secure an alternative restructuring solution (like an Administration or CVA). |
| Winding up order made | At hearing (if undefended) |
Terminal / Compulsory Liquidation The company is forced into compulsory liquidation. Control transfers immediately to the Official Receiver, and directors’ powers cease. |
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When you call us for winding up petition help, here is what happens…
Free, same-day assessment
We assess your position immediately, at no cost and in strict confidence. We tell you exactly where you stand and what your options are before you commit to anything.
Petition prevention
If you have received a statutory demand but the petition has not yet been filed, this is the best time to act. We can open negotiations with HMRC or the creditor directly and in many cases prevent the petition from being issued at all.
Stopping the Gazette advertisement
We can work quickly to prevent the petition becoming public, protecting your banking, your suppliers and your reputation. Once advertised, the damage is very hard to reverse.
Negotiating with HMRC
HMRC takes a harder line than most creditors and the debt is considered indisputable by the courts. Our experience of negotiating Time to Pay arrangements with HMRC before a petition reaches the hearing stage is extensive. Acting early is essential because HMRC will rarely agree to a payment plan once a petition has already been presented.
Putting a legal shield in place
If your business is viable and worth saving, we can advise on placing the company into administration, which immediately pauses the petition and stops all creditor action while a rescue plan is put together.
Structuring a CVA
A Company Voluntary Arrangement (CVA) allows your company to repay its debts over up to five years while continuing to trade. We can prepare and present the CVA proposal and negotiate with HMRC and other creditors on your behalf.
HMRC petitions follow the same legal process as any other creditor petition, but there are important differences you need to understand.
Before filing, HMRC will typically have issued one or more demands and may have sent a statutory demand giving you 21 days to pay. In some cases, particularly where they suspect assets are being moved, they will go straight to a petition without a prior statutory demand.
Once the petition is filed with the court, HMRC pays a filing fee and a mandatory deposit to cover the Official Receiver’s costs if a winding up order is eventually made. The petition is then served at your company’s registered office.
From that point, the seven-day clock starts. HMRC must wait at least seven working days after service before advertising in the London Gazette, but banks often discover the petition through credit agency data before it is even advertised and account freezes can happen without warning.
At the court hearing, a judge reviews the creditor’s evidence. If no credible defence or rescue plan is presented, a winding up order is made. The Official Receiver is appointed, your directors’ powers cease immediately, all company assets are placed under their control and every employee is automatically dismissed.
As a director, your personal risk does not end there. The Official Receiver will investigate your conduct. Trading while insolvent can result in personal liability for company debts. Misconduct or breach of fiduciary duty can lead to director disqualification for up to 15 years.
The right option for stopping a winding up petition depends on your financial position, how far the petition has progressed and whether the business is viable. Our experienced team can help you work out which is best for you and your business.
If the debt is genuine and you can pay it in full, the petition will be withdrawn. Note that even after payment, a supporting creditor can step in and take over the petition if there are others owed money.
This is most effective before a petition is issued. Once served, HMRC rarely agrees. If you have not yet received a petition, call us now. We can approach HMRC before that stage. Read more about Time to Pay arrangements with HMRC.
If the debt is genuinely disputed, for example because the goods or services were defective or the amount is wrong, you may be able to have the petition struck out. This is where a solicitor can help and we can refer you to a specialist insolvency firm.
If you are close to securing new finance or a significant payment that will clear the debt, you can apply to the court for an adjournment of up to 28 days. A judge may grant a further adjournment in exceptional circumstances.
Placing the company into administration imposes an immediate moratorium on all creditor action, including the petition. An administrator is appointed to manage the business while a rescue plan or sale is arranged. We can advise on and manage this process.
If the business is fundamentally viable, a CVA allows the company to keep trading while repaying creditors over up to five years. We have completed more than 300 CVA rescues and have a strong record with HMRC in particular.
Solicitors who specialise in winding up petitions are skilled at challenging the legal process. They can dispute debts, apply for injunctions and represent you in court. If the debt is genuinely disputed, you need one and we will point you in the right direction.
But the majority of directors facing an HMRC petition owe the money. The debt is real. The challenge is not legal. It is commercial and financial. That is where we are better placed to help as licensed insolvency practitioners.
We negotiate with HMRC directly in a way a solicitor cannot. We understand exactly what HMRC needs to see to agree a payment plan. We can put an administration or CVA in place quickly. And because we are insolvency practitioners rather than lawyers, we focus entirely on saving the business.
We also work alongside specialist solicitors where legal challenges are appropriate. You do not have to choose between the two.
Company sold for millions after HMRC petition stopped
Murray Duncan approached our team when his company, Paralaw Limited, was facing severe cash flow pressure and a substantial HMRC liability. HMRC was in the process of issuing a winding up petition. We placed the company into administration to stop the petition, then structured a Company Voluntary Arrangement that repaid all creditors 100p in the pound. The business continued to trade, recovered fully and was eventually sold for millions.
Can a winding up petition be stopped once it has been served?
Yes, in many cases. The earlier you act, the more options you have. Settling the debt, negotiating an adjournment, placing the company into administration or proposing a CVA can all prevent the petition from resulting in a winding up order. Call us as soon as you receive the petition.
It is highly likely banks will freeze your accounts. They monitor credit agency data and often freeze accounts within days of a petition being served, sometimes before it is even advertised in the London Gazette. A validation order from the court can allow essential payments to continue.
It is harder to negotiate once a petition is filed. HMRC treats the debt as indisputable and takes a hard line, but we do have experience negotiating at this stage. That said, our strongest results with HMRC come from acting before the petition stage, when a Time to Pay arrangement is still a realistic option.
A petition is the creditor’s application to the court asking for the company to be wound up. A winding up order is the court’s decision to grant it. The order is final and ends the company. The petition is the point at which you still have options.
We can speak to you the same day you call and begin work immediately on your winding up petition issue. Speed is critical and if the seven-day advertisement window is approaching, we need to act within hours. This speed is one of the reasons we are a good option compared to solicitor firms.
Your initial assessment with us is completely free and strictly confidential. We will then tell you what your options are before you make any decision regarding costs and your business’ future.
Speak to us today
If you have received an HMRC winding up petition, every day matters. Our team of licensed insolvency practitioners is available now for a free, confidential discussion about your situation and your options.
Call free: 0800 970039
Mobile: 07833 240747
We offer a no obligation 2 hour meeting with one of our turnaround managers. Please send us your details and we will be in touch.
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Written ByKeith Steven
Turnaround Director
Keith is the Turnaround Director of RMT Accountants & Business Advisors. Prior to being acquired by RMT his company KSA Group has undertaken more than 300 CVA led rescues. Read our case studies to see how.
Written by Keith Steven, Turnaround Director at RMT Accountants and Business Advisors. Keith has overseen more than 300 company rescues. This page has been approved by Chris Ferguson, Licensed Insolvency Practitioner and Director of RMT Recovery and Insolvency.
Company Sold For Millions After KSA Stopped Winding Up Petition
Company Sold For Millions After KSA Stopped Winding Up Petition
Stationery Supply company Recieved A Winding Up Petition
Stationery Supply company Recieved A Winding Up Petition
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