Steve Thomas, Insolvency Partner and Mediator at Excello Law, acted for a client company faced with a winding up petition (WUP) issued by HMRC in excess of £1.5 million.
The company was committed to pay the debt in full to avoid entering administration or liquidation. Following a successful negotiation, the petition has been dismissed.
HMRC filed the WUP in the High Court of Justice Business and Property Courts of England and Wales Insolvency and Companies list in February 2025. Prior to contacting Steve, the company’s previous attempts to ask HMRC for an extended timeline to pay the monies owed – and the attempts made by the company’s advisors – fell on deaf ears. The WUP process moves quickly and they can take effect within a month of reaching court.
To help the company resolve the matter, Steve suggested a Company Voluntary Arrangement (CVA). The process was carried out privately where possible using informal mediation, though it involved three High Court hearings and took twelve months total.
Negotiations proved successful, and the client has agreed a CVA which proposes payment of the debt to HMRC in full over a five year period. HMRC, the majority creditor in the WUP, voted in favour of the proposal in October 2025. This resolution has saved the company from collapse and protected more than 100 jobs.
Steve Thomas comments: “This case highlights the importance of early engagement with HMRC to resolve a winding up petition, and that persistence and skilled specialist legal advice can help bring proceedings to a conclusion satisfactory to all parties.
We are proud to have helped finalise an agreement that safeguards the future of this business and its employees. This matter serves as a reminder that even when a company is facing challenging circumstances and owes significant debt, there are options available to avoid insolvency.”
