HMRC steps up tax debt collection

Her Majesty’s Revenue and Customs have announced that following the majority of restrictions being lifted in the UK that tax debt collection work will restart. This means that taxpayers who don’t pay their tax debts may be subject to HMRC’s tools of enforcement including taking control of goods, summary warrants and insolvency court action such as issuing statutory demands, bankruptcy petitions and winding up petitions.

Our London Tax Solicitors and Barristers have vast experience of tax laws and first hand commercial, litigation and advocacy experience. We have a proven track record of successfully contesting disputed tax assessments and penalties with HMRC. The tax authorities have lost many cases that are appealed through negotiation, internal review or through the Tax Tribunal.

HMRC tax debt enforcement

Her Majesty’s Revenue and Customs (HMRC) have announced it will restart contacting customers who have fallen behind on their tax payments. HMRC have also gone on to say that, it will be considerate to help businesses with temporary cash-flow issues to survive as the economy grows, but where businesses have little chance of recovery they have the responsibility to act as allowing unsustainable debt to build up, wouldn’t be beneficial to anyone.

HMRC have lead with a simple message “if you can pay your taxes then you should do so, but if you’re struggling, we want to work with you to agree a plan based on your financial position”.

Download HMRC’s policy announcement on collecting tax debts as we emerge from coronavirus (COVID-19) here.

Can I challenge a winding-up petition from HMRC?

In short yes. If your company has been served with a winding-up petition from HMRC, you have the right to challenge it if any of the following grounds apply:

  • The debt alleged in the petition is genuinely disputed on substantial grounds by the company;
  • The company has a genuine right to set-off against the creditor which exceeds the amount of monies claimed in the petition; or
  • Certain other limited circumstances (for example where the Company is likely to become insolvent or there has been a procedural error or delay).

Can you represent me at my Winding-up petition hearing?

Yes. The rules surrounding insolvency are technical and it is unlikely that a someone not versed in personal insolvency laws will achieve a successful outcome. Winding up particularly and insolvency in general is a niche practice area – indeed many solicitors in general practice will rarely have experience in this discipline.

Do not underestimate the severe consequences that winding up a company entails. It is likely that seeking the advice of a specialist insolvency lawyer will be of far more benefit to you than ignoring impending proceedings or seeking to conduct the litigation yourself as a layman.

Our team is made of highly experienced and tough negotiators that will fight to get the best results for our clients. We have years of experience of negotiating with creditors and debtors alike from large multi-million pound cases to smaller matters with equally large consequences for the person involved.

HMRC Petition Advice

If you have received a HMRC winding up petition we are able to provide urgent help, advice or representation. We provide expert legal advice from our team of leading HMRC Petition Solicitors or Barristers.

Please note: If you have been warned about your file being passed to HM Revenue & Customs’ Solicitor’s Office or have been served a statutory demand or petition do not delay in contacting us as your matter can be handled more effectively the sooner you contact us. 

HMRC Enforcement Action

HMRC can enforce tax debts in a number of ways and it is imperative that you seek legal advice at the earliest opportunity to protect your position.

If you have received a statutory demand, you must act quickly (usually within 18 days) if you hope to avoid HMRC bankrupting you as an individual or applying for a winding up petition if you are a company. With debt enforcement by HMRC it is inevitable that unless action is taken the demand will eventually lead to the presentation of a winding up or bankruptcy petition.

Our tax team work closely with our insolvency team to manage the HMRC enforcement process for you. Many specialist tax firms cannot offer dual expertise in both practice areas, but our firm can provide a bespoke solution to your individual circumstances be it with tax advice or insolvency solutions.

Expert London Tax Lawyers

If you need HMRC Tax Investigation advice, we are available to aid you at every stage of the HMRC investigate process. Members of our legal team have first-hand experience and knowledge of the internal workings of HMRC. We can provide you with the very best representation in negotiations with HMRC and defending all forms of HMRC fraud, tax inquiry, tax fraud investigation, criminal tax evasion and HMRC enquiries and investigations. Our team specialises in successfully challenging HMRC decisions and will assist you in every aspect of the investigation.

Our specialist Tax Solicitors and Barristers deliver expert technical knowledge, strong negotiation skills and respected advice, which can make a pronounced difference to eventual tax penalties, charges and liability.

Want legal advice from Tax Solicitors on your case?

Our simple enquiry form goes immediately to our tax litigators in Middle Temple, London. Call us on +442071830529 from 9am-6pm.

ACT PROMPTLY

Please note that if you have been warned about your file being passed to HMRC’s Solicitor’s Office or have been served a statutory demand or winding-up petition do not delay in taking legal advice. Your matter can be handled more effectively the sooner you contact us.

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