Challenge the debt
Assess whether the alleged tax debt is genuinely disputed on substantial grounds and whether insolvency proceedings are appropriate.
Urgent company insolvency advice · England and Wales
An HMRC winding-up petition can put a company’s future at risk. Depending on the facts, there may be grounds to dispute the debt, negotiate a resolution, oppose the petition or apply for urgent court relief.
Urgent assistance 9am–9pm · Independent of HMRC
The immediate priority
If HMRC has threatened or presented a winding-up petition, obtain the petition, supporting documents and details of any hearing. Check whether the debt is correctly stated, whether payments have been credited and whether any substantive dispute exists.
A petition may sometimes be resolved through payment, an agreed settlement, withdrawal, opposition or court intervention. None is automatic, and HMRC discussions alone do not stop the court timetable.
Advertisement can create serious commercial and banking consequences. Advice should therefore be obtained before the advertisement stage where possible.
Possible legal options
The correct approach depends on the underlying debt, the company’s position and the stage of the proceedings.
Assess whether the alleged tax debt is genuinely disputed on substantial grounds and whether insolvency proceedings are appropriate.
Explore payment, settlement or other proposals, recognising that HMRC is not obliged to agree and proceedings continue unless formally dealt with.
Where proper grounds exist, seek to restrain presentation or advertisement of the petition. Such orders are exceptional and fact-sensitive.
Review procedural compliance and prepare witness evidence and submissions to support the company’s position.
Seek dismissal, adjournment or another appropriate outcome at the hearing, subject to the evidence and court’s discretion.
Consider whether a validation order is needed for particular company payments or transactions after presentation of a petition.
Prompt advice can preserve options that may become harder to pursue after advertisement or an order.
A practical response
Check the debt, petition, dates and HMRC enforcement history.
Assess the merits of opposition, settlement or urgent court relief.
Prepare evidence, correspondence and applications where justified.
Negotiate or attend the hearing to pursue the appropriate outcome.
Frequently asked questions
Potentially. Depending on the facts, a petition may be withdrawn, dismissed, adjourned or otherwise resolved. A genuine dispute over the debt, payment or a negotiated arrangement may be relevant, but no outcome is guaranteed.
Yes, where there is a proper substantive basis. A mere assertion that the debt is disputed is insufficient. The availability of tax appeal procedures and the nature of the assessment may also matter.
Advertisement is governed by procedural rules and timing requirements. Once advertised, banks and trading partners may react. An application to restrain advertisement requires proper grounds and should be considered urgently.
Not necessarily. Other creditors, costs and the court process may need to be addressed. Obtain confirmation of any agreed steps and ensure the petition is formally disposed of.
Seek urgent advice. A validation order may protect specified transactions in appropriate circumstances, but does not itself require a bank to restore access.
Directors must carefully consider their duties, the company’s financial position and the risks of transactions following presentation. Obtain tailored insolvency advice before making significant payments or transfers.
Related specialist services
England and Wales · Draft reviewed 16 October 2026 · General information only. Requires final solicitor review before publication.
Urgent HMRC petition advice
Contact a solicitor with the petition, hearing date and relevant HMRC correspondence.