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.

Business rates reform from April 2026 introduces permanent relief for hospitality and leisure businesses, but careful planning is essential to manage revaluation impacts and rising operational pressures.

This article explains HMRC debt escalation, enforcement risks, and when directors should consider a Company Voluntary Arrangement (CVA) or Creditors’ Voluntary Liquidation (CVL), featuring expert insights from insolvency practitioner Molly Monks.

A Company Voluntary Arrangement (CVA) and a Time to Pay (TTP) arrangement with HMRC are both mechanisms to help a business manage debt, but they differ significantly in scope, formality, and impact.

New figures released by HMRC reveal a concerning rise in unpaid corporation tax among the UK’s small businesses, prompting claims that the tax authority has “lost control” of the sector.