In more detail
Creditors have the right to distraint – the ability to seize assets in lieu of debts – once they have been granted a court order. When it comes to HMRC they can skip that process although they still have to adhere to strict regulations.
HMRC may send you a 21 day warning letter if you are late with any tax payments. This is designed to get you to pay or to negotiate for a Time to Pay Agreement. The letter may state that if payment is not made within 21 days then HMRC will present a petition to the High Court to wind up the company due to its insolvency. If they have said that they mean it and it is important to act fast.
If your business is not viable and its debts are too great then an administration should be considered. Doing this can reduce the risk of wrongful trading and possible personal liability for the directors.
Speak to our experts, we deal with these kinds of situations every day and can help you find a solution. Call us today on 0800 254 5494