What does winding up petition mean for the company?

What does winding up petition mean for the company?

WINDING UP PETITION

Have you been threatened by a creditor with a winding up petition or maybe have had a winding up petition served on your company?

What does winding up petition mean for the company?

The biggest number of winding up petitions being issued are by HMRC for none payments of tax for VAT, PAYE or corporation tax. Some company directors are smart enough to seek professional advice as soon as they know there is trouble ahead with company debts, they seek professional advice and end up saving their business regardless of the amount of debts to the company. Then there are other directors who wait until it is too late and the petition has landed in the post.

The early warning signs is the best time to get an insolvency auditor involved to help you plan on how best to deal with the debts and avoid the petition regardless of the size of debt or debts for your company. The other avenue open to the early warning signs person is to get a turnaround practitioner involved to help turn a viable business around. Provided you have a viable business worth saving an insolvency auditor or a turnaround practitioner will be able to help you structure a plan to save your business from a winding up petition.

On the other hand if you have not had the chance or the opportunity to seek advice and you have had the winding up petition served on you then your options are very few. One, is to fight it if you have a good defence as you have an ongoing dispute over goods or services with the creditor. Two, pay the full amount plus any legal costs before the court hearing day and have the petition discharged. Three, if you have a viable business which could be turned around then we might be able to get the courts and the creditor to agree to an administration order to save and restructure the company as this will result in returning more money than a liquidation via a petition. There are a few more options which are also open but these all depend on your financial position short term and long term.

Regardless of where in the winding up petition cycle you are there is always of finding options open to your problems provided your business is worth saving.

Most of my clients come to me seeking an umbrella once the storm has arrived on their doorstep, this is where I help them by coming out of the cold storm and having a nice hot coffee or tea and see what solutions and option we can create to save their business.

If you need professional help and advice to save your business from the storm, then give me a call on 0800 24 0800 and leave me a message with a brief description of the problems you are facing and the best time to call you back for private and confidential chat to see how we can assist you.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
Winding Up Option for Company Directors

Winding Up Option for Company Directors

WINDING UP PETITION

Is Your Business Being Threatened With Winding Up Petition?

Do you owe money to the VAT man, Tax man or other creditors & Being Threatened With A Winding Up Petition

A winding up petition is a very serious court lead legal procedure to close your company down, yes close it down or the phrase winding up states it will wind the company’s affairs up and close the business and sell off all the assets owned by the company in order to pay off the creditor petitioning.

Once the winding up petition has been issued against your company you are left with minimal choices compared to when you were being threatened by a petition. When seeking advice make sure you find a good Insolvency Auditor to help you through the legal maze of insolvency process. You see when you have a threat hanging over your company and no action has been taken apart from the threatening letter or a statutory demand you can do a number of things:

  • Pay the debts off in full
  • Ask for a payment plan
  • Arrange for a CVA which is a Company Voluntary Arrangement to repay the total debts of the company over a number of years subject to 75% of your creditors agreeing to it
  • Depending on the size of the company and the viability of the business you can arrange a Pre-Pack Administration which involved setting up a new company to buy the assets of the old company and continuing in business without any of the debts of the old company.
  • Liquidate your company by means of a voluntary liquidation and buy any assets back from the liquidator and set up a new company and carry on business without the worry of the creditors from your old company.
  • A straight forward Voluntary Company liquidation, this happens when the company is dead in the water and has no future and the directors just want to minimize their personal liabilities and that of the company’s liabilities and just walk away after the liquidation.
  • Last of all is to do nothing and wait for the Winding Up Petition to arrive which then turns into a Winding Up Order to close the company down and hand the rains over to the court appointed liquidator or even the Official Receivers Office

The above is just an outline of the winding up option to you as a company director subject to the status of your company.  A good Insolvency Auditor would ask you first of all where would you like to be in 6-12 months time if you had the choice and then plan around that what your options are to survive the insolvency and to save your business be it in its current form or in the form of a Phoenix rising from the asses of the old company. You must not ignore any threats made against your company regarding a Winding Up Petition, speak with an Insolvency Auditor before it is too late.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
Company Winding Up Petition

Company Winding Up Petition

WINDING UP PETITION

Everyone who starts a business wants to ensure it is a success. But sometimes even the most successful businesses face situations which are eventually to be their undoing. This could be anything from bad management to a recession right through to competing businesses.

If a business owes money to its creditors and does not take the steps necessary to resolve this situation, it may be faced with a winding up petition. Read on to find out more about what this means.

What should your first move be if you are given a company winding up petition?

Your first move should always be to get fast professional advice from insolvency auditor. Do not underestimate the power of a winding up petition because it could well be the beginning of the end for your business. It is possible to stop one in its tracks, but you must seek the advice of a insolvency auditor who is experienced in these situations to discuss your options.

For example if you can immediately clear your company debt to the creditor who has initiated the winding up process you should do so as quickly as possible. On no account should you ever miss a court appearance for the petition to be heard, otherwise you can be sure the petition will be granted.

If you are able to act quickly there may be an opportunity to ward off the winding up petition and instead agree on a voluntary liquidation arrangement. Again a insolvency auditor can help to advise on this possibility.

What about an HMRC winding up petition?

This is basically much the same thing, but in this case the winding up petition is issued by HM Revenue and Customs. If your company has been unable to pay its taxes on time (this could include VAT if it applies to the turnover reached by your business) it may eventually issue a winding up petition.

The HMRC does not issue these until it has tried to attain payment in other ways. But it has been stated that they are doing so more quickly now than they have in the past. This is possibly to recoup any cash that is owed to them more quickly than it would be otherwise.

So you can see that the winding up petition procedure is a serious one – and one that you should seek help and advice for as quickly as possible.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
Winding up your company and corporation tax

Winding up your company and corporation tax

WINDING UP PETITION

You need to know when the winding up process for your company has started – this can affect your Corporation Tax payment and Company Tax Return filing deadlines and requirements.

Winding up your company and corporation tax 

The winding up of your company for Corporation Tax purposes normally starts on the earliest of when:

  • your company goes into administration
  • your company’s shareholders pass a winding-up resolution to shut it down
  • a winding-up order is imposed on your company by the court; for example, following an application by an unpaid creditor such as HMRC, if you don’t pay your company’s Corporation (see separate section below)
  • a liquidator is appointed

Winding up and Corporation Tax accounting periods

At the start of your company being wound up, your current Corporation Tax accounting period comes to an end and a new accounting period begins. From that point on, your company’s accounting periods run for periods of 12 months until the winding up is complete.

If your company is in the process of being wound up, it’s still subject to Corporation Tax paying and filing requirements. For example, your company must continue to file a Company Tax Return and pay Corporation Tax on taxable profits arising from:

  • trading income and other income such as investment income
  • the sale of other goods or assets (chargeable gains) for example to pay off creditors

Your company will pay any Corporation Tax due during the winding-up period at the same rates as before the winding-up period started.

Winding up and control of the company

In certain winding-up situations a liquidator, or the Official Receiver, becomes the beneficial owner of your company. From this point on, company shareholders or directors have no further say in the running of the company including filing Company Tax Returns and paying Corporation Tax.

When this happens, your company’s Corporation Tax Office communicates with the Official Receiver or liquidator and can disclose information that would have been known by your company. For example, correspondence, Corporation Tax payment history, notes of interviews with company directors or other company officers.

In other winding-up situations such as administrative receivership or creditors’ voluntary arrangement, the company officers retain responsibility for filing Company Tax Returns and paying Corporation Tax.

 

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
Inland Revenue Winding up Petition

Inland Revenue Winding up Petition

WINDING UP PETITION

Inland Revenue Winding up Petition Process 

Protection Against Winding Up Petition For Company Directors

“Winding up” in this case refers to the closure of a business, and the processes involved in bringing the company to an end through court proceedings and then sale of company assets. If a creditor wishes to liquidate a particular company because debts are not being paid, they can submit a winding up petition. It is important to realise that companies can in fact submit a winding up petition for themselves, but it is commonly submitted by creditors who have grown impatient with false promises that the company has made regarding payments. Winding up is a very serious matter and can prove detrimental to both creditors and businesses. 

The Inland Revenue may be one of the creditors you owe money to, and they are very effective at recovering their debts. They will usually have tried several methods to get their money back, and but if you have not paid or you can’t agree on Payment Terms, your company receive a Winding Up Petition.

Prevent Further Action

You can cease proceedings by paying the Inland Revenue all of the money you owe to them, or by implementing a payment plan that both parties can agree to and your company can stick to. It is always advisable to keep in contact with the Inland Revenue all the way through the proceedings. This is a very compromising position for a business to be in, it is hence of paramount importance that you face the problem head-on and try to deal with it in the most effective manner.

A date and time for a court case will have already been arranged and will be stated on the petition. It is important to realise that there can be a considerable amount of time between your company receiving the petition and the specified court date. You will normally be allowed to continue trading before the court date, providing you are not breaking any other laws such as continuing to trade whilst insolvent. However, it is vital that your trading is nothing less than exemplary in this time period, as any trading undertook by your business between receiving the petition and the pre-arranged court date will be heavily scrutinised.

A legal representative will usually represent the company at court, although in certain circumstances, a company representative may be allowed to represent the company, if this has been approved by the courts. If your company loses the case, the Winding Up Petition will become effective immediately, and a liquidator will be appointed to sell company assets.

Pressure For Directors

Throughout this entire period, the company directors will be under pressure and thorough scrutiny. They will have to submit accounts and a list of assets to the Official Receiver or the Liquidator’s office, as well as a list of creditors that the company owes money to. 

If your business has a Winding Up Petition submitted against it, you need to act swiftly and effectively. You can seek independent and professional advice from an Insolvency Auditor who will help you make the decisions that will be most favourable to your company, and ultimately help to determine your company’s outcome. 

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
HMRC Winding Up Petition

HMRC Winding Up Petition

WINDING UP PETITION

If your company has been issued with a HMRC winding up petition, the three most common questions we get asked daily are:

1.       Can the winding up petition be stopped?

2.       Why will HMRC not accept an offer for the debt?

3.       Do I still have options, even in this stage in time?

Can the winding up petition be stopped?

Yes a winding up petition can be stopped in a number of ways but this all depends on a few factors and the main factor being, will the creditors get more money on realisation of assets with another option i.e. an Administration Order or a CVA than if they were to continue going down the winding up rout.  Secondly is the business worth saving or rather the question as I would ask have you got a real business that’s worth saving?

Some of the factors worth mentioning are what assets has the company got? Are the assets worth more than the debt? These are all factors that have to be taken in to account when deciding to save your company from a petition.

Why will HMRC not accept an offer for the debt?

When a petitioning creditor issues a winding up petition it is normally as a last result with no other option to turn than the courts to close the company down and to liquidate the assets if any to pay off creditors. In the opinions of HMRC they have tried to collect the debt and have given you ample time to pay up with plenty of warnings and notices but the debt not being fully paid off.

Once the matter goes in to the legal department then the court lead process takes over. To me it is madness as to why HMRC will not take a settlement for what is being offered rather than wind the company up which might in most cases end up with zero and out of pocket cost for courts also i.e. the tax payer. This is really and totally unnesscessory in about 45% of the cases when they can get some money back rather than a big fat zero.

Do I still have options, even in this stage in time?

Yes a petition can always be stopped at anytime if you are able to pay the debt in full and any legal costs incurred by the petitioning creditor. Like I said above is the business worth saving, are the assets worth more than the debt or not, is there a revenue stream that is dependable for future income and also is there a good will in the business, the client base your suppliers base. There are a number of factors that need to be taken in to account.

Most of the factors as with any business are around the value in monitory terms and also factors by how many jobs will be saved or lost if the winding up petition went ahead.

For a private and confidential telephone chat why not telephone our directors helpline on 0800 24 0800 and leave short message for me Moe Nawaz with the best time to call you back for a chat about finding the best option for you and your company. Or alternatively find a local insolvency auditor to advise you of your options with the winding up petition.

Moe Nawaz: Author – Speaker – Turnaround Practitioner – Insolvency Auditor 

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...