Key facts
- London Broncos owners have paid their tax bill.
- HMRC filed a winding-up petition against London Broncos on Monday.
- A winding-up petition is a court application to force a company into compulsory liquidation over unpaid tax.
- HMRC typically issues petitions for sums above £20,000, though the minimum debt threshold is £750.
- Advertisement of a winding-up petition can freeze company bank accounts.
London Broncos owners have paid their tax bill following a winding-up petition filed by HM Revenue & Customs (HMRC) on Monday. A winding-up petition is a formal court application by HMRC to place a company into compulsory liquidation due to unpaid tax debts, representing the most severe enforcement action the tax authority can take.
HMRC typically issues such petitions for sums exceeding £20,000, although the minimum debt threshold is £750. The process can escalate quickly; advertisement of the petition in the London Gazette, which can occur as early as seven business days from service, typically leads to the freezing of company bank accounts. Directors are advised to act swiftly upon receiving a petition, as transactions made after the petition is filed can be voided if the company subsequently enters liquidation.