Have you received an HMRC Or Local Authority Bankruptcy Petition?
HMRC
If you have failed to pay your tax rates in full, including interest to HM Revenue & Customs (“HMRC”), you can have a Statutory Demand served against you by HMRC, if the debt which you owe is at least £5000. If you have failed to pay the sum stated in the Statutory Demand, HMRC can proceed to present a Bankruptcy Petition against you.
Once a Bankruptcy Petition is presented against you, even if you have the funds to pay the debt in full or can prove that they do not have any tax liabilities, HMRC can also request that the Bankruptcy Petition continues unless you pay HMRC’s additional costs for preparing and presenting the Bankruptcy Petition. It is important to settle your debt before it reaches the Petition stage.
Client Case Study
Altion Law successfully assisted a client in deflecting bankruptcy, following a bankruptcy application issued against them for outstanding sums due to HMRC. This particular client was a sole trader, and therefore there was a lot at stake for our client, his business and also his family. Through successful communication with HMRC, several delays to the bankruptcy hearing were agreed, which over the months allowed our client sufficient time to negotiate and obtain the funding required to put in acceptable offers to HMRC. Our client continues to run a successful business today, without the added stress of HMRC on their back.
HMRC can also collect taxes due to them:
- Directly through your earnings or pension.
- By instructing debt collection agencies to collect the money.
- If you live in England, Wales or Northern Ireland, HMRC can take things you own and sell them.
- If you live in England, Wales or Northern Ireland, HMRC can take money directly from your bank account or building society.
- HMRC can also take you to court. HMRC can make you bankrupt or close down your business.
Altion Law are specialists at advising and representing parties who are in disputes with HMRC. For a confidential free discussion, call us today on 01908 414990, alternatively emails us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
Local Authority (Council tax)
If you have failed to pay your Council tax liability, then the Council may action to apply to the Magistrates’ Court for a Liability Order. If the Liability Order is not paid in full and the debt due, (including any penalties and legal costs) is for £5000 or more, the Council will commence Bankruptcy proceedings against you.
Be aware that once a Bankruptcy Petition is presented against you, even if you have the funds to pay the debt in full, the Council can make a request that a Bankruptcy Order be made. This means the Council will seek also payment of their costs for preparing and presenting the Bankruptcy Petition. It is important to settle the debt before the Petition is presented.
Altion Law are specialists at advising and representing parties who are in disputes with HMRC. For a confidential free discussion, call us today on 01908 414990, alternatively emails us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.