HMRC issues more than 4,300 winding up orders in 2018-19

The number of winding up petitions filed by HMRC against businesses has reached a four-year high according to accountants and business advisers Moore.

The department filed 4 308 winding up petitions in the year to September 2019 an increase of 6% from 4 073 in the previous year. It uses these petitions to pursue outstanding tax payments from businesses and may result in the closure of the concern and the liquidation of any assets held. 

Moore says that Brexit uncertainty combined with global economic slowdown have created tougher trading conditions in many sectors in the UK. This has resulted in more businesses struggling to pay tax bills and is leading to more attempts by HMRC to recover the outstanding debt by winding up businesses as opposed to working with them on ways to settle the amount. 

Lucienne Parry partner at Moore said: ‘It is important that businesses as...