{"id":24572,"date":"2023-03-13T09:30:15","date_gmt":"2023-03-13T09:30:15","guid":{"rendered":"https:\/\/smh.group\/?p=24572"},"modified":"2023-03-13T09:30:15","modified_gmt":"2023-03-13T09:30:15","slug":"winding-up-petitions-on-the-rise-in-hmrc-squeeze","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/winding-up-petitions-on-the-rise-in-hmrc-squeeze\/","title":{"rendered":"Winding-up petitions on the rise in HMRC squeeze"},"content":{"rendered":"

With HMRC under pressure to collect more tax owed, it is moving away from the tolerance shown during the pandemic and back towards a normal level of debt enforcement activity. As a result, the number of company winding-up petitions being instigated by HMRC is rising rapidly.<\/strong><\/p>\n

HMRC\u2019s use of winding-up petitions to actively chase the money it is owed comes at the worst possible time as many companies struggle to cope with inflationary pressures, higher interest costs and reduced consumer spending. HMRC\u2019s aim is to recover tax owed from a company\u2019s liquidated assets.<\/p>\n

Although the tax gap (the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid) has declined in recent years, it is still 5.2% or \u00a332bn.<\/p>\n

Time-to-pay arrangements<\/strong><\/p>\n

For a company experiencing difficulty paying its tax liabilities, the best way forward is to agree to a time-to-pay arrangement with HMRC. This avoids the possibility of a winding-up petition, although early engagement with HMRC is essential.<\/p>\n