"Giving the right advice, first time, every time"

HMRC & Creditor Pressure

BRI Business Recovery and Insolvency

We are an independent company of insolvency practitioners committed to finding the right solutions for businesses and individuals in financial difficulty

Information for Companies:

If your company is unable to pay HMRC or a creditor then it will be better to address the problem with them rather than leave them to discover the truth for themselves.

Notifying them of your inability to pay a debt and keeping them up to date is an important step to take.

If you ignore or do not notify HMRC/a creditor, this will likely lead to them formally requesting payment.  This can be done through 3 formal routes:

  1. Apply to Court who will issue you with a County/High Court judgement;
  2. Serving your company with a Statutory Demand;
  3. Serving your company with a Winding-up Petition.

Any Court judgement, statutory demand or winding-up petition will be served at your company’s registered office address.

The ordinary process for creditors to follow is to initially issue you with a judgement or statutory demand and if it is not dealt with within a certain time frame then a winding-up petition may follow.

However, on occasions, creditors will endeavour to abuse the process and proceed directly to serving a winding-up petition without prior formal notification.

HMRC are more likely to follow these procedures rigorously and will take action if a debt is not dealt with.

If your company has received a Court judgement, statutory demand or winding-up petition, you will need to react quickly otherwise they can have disastrous effects and, ultimately, lead to the formal closure of your company.

Information for individuals/sole traders/partnerships:

A similar formal debt collection process applies for individuals, sole traders and partnerships.

HMRC and creditors have 3 formal routes they can take to request payment of a debt owed by you:

  1. Apply to Court who will issue you with a County/High Court judgement;
  2. Serve you with a Statutory Demand;
  3. Serve you with a Bankruptcy Petition.

The ordinary process is the same and if any judgement or statutory demand is not dealt with within a certain time frame then this can lead to your Bankruptcy.

React now:

BRI are here to help all companies or individuals who have received formal requests for payments of a debt that cannot be paid.  We have a vastly experienced team who have strong contacts within HMRC and have dealt with a number of aggressive creditors.

Dealing with distressed creditors quickly is of great importance in determining a company’s/individuals financial future.