Close Menu
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Reintroduction of Winding Up Petitions ‘Will Add to Pressure on Struggling Firms’

By Jon Munnery
26 May 2021

The lifting of the ban on winding up petitions in the UK will add notably to the financial pressures being faced by struggling firms across the country.

A temporary ban on winding up petitions has been in place throughout the Covid-19 crisis but is scheduled to be lifted from the end of June.

The ban has effectively protected large numbers of companies from the potential legal consequences of being insolvent.

It is unclear quite how many businesses across the country might soon be pursued again through the courts by their creditors but some experts are expecting a wave of corporate insolvencies in the coming months and an increase in liquidations.

With other aspects of government support being scaled back over the summer months, it’s anticipated that the reintroduction of winding up petitions will have a big impact on the rate at which British companies are entering insolvency and liquidation in the second half of the year.

Christina Fitzgerald, vice president of the insolvency and restructuring trade body R3, has said that the ending of the winding up petitions ban will “clearly increase pressure on financially struggling firms”.

“Government has a challenge on its hands in terms of managing the exit from lockdown and the withdrawal of its financial support measures,” she added.

“How it handles this will help to determine if there is a sharp spike of business failures or simply a smoother return to pre-pandemic insolvency levels.”

Along with representatives of the Institute of Directors (IoD), R3 recently wrote to the government encouraging decision makers in Westminster to ensure that HMRC takes a balanced approach to pursuing its debts in the coming months.

Explaining the reasoning behind that request, Roger Baker from the IoD said: “The ability of companies to negotiate with their creditors will depend on the HMRC’s position - if the HMRC demands its cash back immediately then other creditors are less likely to agree to terms to keep the business going.

“HMRC have placed themselves at the top of the pecking order - and with that position comes responsibility given decisions will have a ripple effect across jobs and other related suppliers and customers.”

Jonathan Munnery
Insolvency & Restructuring Expert
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
Voluntary Liquidation Cases Up 9% On Last Year
The number of voluntary liquidation cases in England and Wales were up by 9 per cent in March as compared to the same month of last year.
Read more
Fashion Retailer Dress Me Online Entered into Liquidation
A fashion retail brand known as Dress Me Online has been entered into liquidation after struggling to cope with an array of financial pressures in recent months.
Read more
Soaring Cost of Steel Helps Push Engineering Firm into Liquidation
Steep increases to the cost of steel in recent months have helped force a Gloucestershire-based engineering firm into liquidation.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

100% Free & Confidential Advice

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY