The most significant creditor in the insolvency courts is HM Revenue & Customs. HMRC are unlike other creditors in that if the business is to continue you will have to deal with them going forward. They are often unemotive in the same way that private creditors can be when they are not paid on time.
All of this means that HMRC are amenable to Time to Pay Arrangements often after a winding up petition is presented.
Stephen Chinnery has over 20 years experience of dealing with insolvency and tax disputes both of which are essential practise fields in attempting to agree Time to Pay terms with HMRC.
Even where HMRC agree a Time to Pay arrangement following the presentation of a winding up petition it may still be necessary to seek a Validation Order. This is because of the following reasons:
- The Company may still be wound up at the request of other creditors. Therefore, the disposition of company property is void;
- The petition may have already been advertised in which case the bank is likely to have frozen the company’s bank accounts;
- Even if the petition has not been advertised the bank may have received notice of the petition and taken steps to freeze the accounts.
For expert tax and insolvency advice in relation to Validation Orders contact us today.