Explains options when a company cannot pay HMRC, including Time to Pay arrangements, CVAs and pre-pack administration, stressing early advice and realistic, sustainable repayment commitments for directors.

This article explains HMRC's powers when a company has tax arrears, covering winding-up petitions, Time to Pay arrangements, and when directors should seek formal insolvency advice from Parker Walsh.

Start again after liquidation properly, using a separate new company with proper funding, tax compliance, fair asset purchases, correct insurance and full co-operation with the liquidator and professional advice throughout.

Parker Walsh helped rescue a viable business facing significant HMRC arrears by negotiating a sustainable four-year repayment arrangement, preserving jobs, restoring stability and avoiding formal insolvency proceedings.

HMRC has strong powers to recover unpaid tax and can shut down companies quickly. Early advice and engagement can protect control, improve outcomes, and prevent winding up action from escalating.

Even with no money or assets, an insolvent company can still be closed properly. Early advice helps directors choose the right route, meet legal duties, and avoid personal risk.

HMRC arrears escalate quickly from missed tax payments to enforcement. Early action protects directors, preserves options, and reduces personal risk before winding up petitions, frozen accounts, or insolvency become unavoidable.

Minimum wage increases from April 2026 will raise staffing costs for many businesses, particularly those employing younger or lower-paid workers, placing pressure on margins, recruitment decisions and long-term workforce planning.