February 2013 eBulletin
HMRC GETS TOUGH! COMPANIES BEWARE – WINDING UP PETITIONS INCREASE!
There were 5,302 winding up petitions presented in 2012 compared to 3,367 in 2011 by HMRC – an increase of over 57%! In January 2013 alone there were 503 petitions issued.
What is a winding up petition? What are the consequences?
A winding up petition is a court procedure. A creditor can issue a winding up petition if there is a debt overdue for at least £750.
The creditor will usually need the assistance of a solicitor to prepare the petition and the cost is likely to be around £1,500 to £2,000 which will include a court deposit, filing fee and legal fees and is a serious step.
The petition will be served on the Registered Office of the company which is why it is so important that any such post is carefully monitored.
The petition will state a hearing date – likely to be around 6 to 8 weeks from the date of the petition.
To find out more about winding up petitions please click here.