The winding-up petition debt threshold for a UK company is £750. If a creditor is owed £750 or more, and the debt is undisputed, they can potentially ask the court to wind up your company — even though that figure sounds small next to the seriousness of the process.
This article explains where that threshold comes from, how creditors combine smaller debts to reach it, and when a petition based on a modest sum is unlikely to succeed.
The current minimum debt for a company petition
Under the Insolvency Act 1986, a creditor can present a winding-up petition against a company for a debt of £750 or more, provided the debt is due, undisputed, and the company has failed to pay it. This is the statutory minimum — there is no upper limit.
Most petitions follow a statutory demand — a formal written request for payment. If the company does not pay, secure the debt, or apply to set the demand aside within 21 days, the creditor may proceed to present a petition to the court.
Why the winding-up petition debt threshold is lower than people expect
Many directors assume a court would only entertain a petition over a substantial sum. In practice, £750 has stood as the company threshold since the Insolvency Act 1986 came into force, and it has never been increased in line with inflation.
The test the court applies is not the size of the debt but whether the company is unable to pay its debts as they fall due. A small, unpaid, undisputed debt can be treated as evidence of that inability, which is why HMRC and other creditors sometimes pursue petitions for amounts that feel disproportionate to directors.
How multiple debts can be combined to meet the threshold
A creditor does not need one single debt of £750. Several smaller invoices, unpaid instalments, or charges owed to the same creditor can usually be added together to reach the minimum.
Common examples include:
- Several unpaid invoices from the same supplier over a period of months.
- Accumulated VAT or PAYE arrears owed to HMRC across more than one return.
- Unpaid instalments under a payment plan that has fallen into arrears.
What matters is that the combined sum is genuinely owed, genuinely due, and not disputed on reasonable grounds.
When a small debt still won't succeed
Meeting the £750 threshold is only the starting point — it does not guarantee a petition will succeed. Courts have consistently refused to wind up companies where the underlying debt is genuinely disputed, or where the petition is being used as a pressure tactic rather than a genuine insolvency process.
A petition is unlikely to proceed smoothly where:
- The company disputes the debt on substantial grounds — for example, a genuine contractual disagreement.
- The company has a valid cross-claim or set-off that reduces or extinguishes what is owed.
- The debt has already been paid, or an agreed payment plan is being honoured.
- There are procedural defects in how the statutory demand or petition was served.
Directors who believe a small debt is being used unfairly should take advice quickly, as there are strict time limits for challenging a statutory demand or petition. For more on what a creditor typically does once a petition is presented, see our guide to what happens next after a winding-up petition.
How this differs from personal bankruptcy limits
It's worth understanding how the company threshold compares with personal insolvency, as the two are often confused. The minimum debt for a bankruptcy petition against an individual is £5,000 — a figure that was raised from £750 in 2015 specifically to stop creditors using bankruptcy over trivial personal debts.
No equivalent change has been made for companies. The £750 winding-up petition debt threshold has remained fixed since 1986, which is why company creditors — including HMRC — can still act on comparatively small sums that would never reach the bar for an individual's bankruptcy.
It's also worth knowing that not every creditor is entitled to present a petition; the rules on standing are set out in our guide to who can present a winding-up petition.
Frequently asked questions
Can a creditor petition for under £1,000?
Yes. As long as the debt is £750 or more, is due, and is undisputed, a creditor can present a petition — there is no requirement for the sum to reach £1,000 or any higher figure.
Does interest count towards the £750 threshold?
Contractual or statutory interest that has genuinely accrued on the underlying debt can usually be included when calculating whether the £750 minimum is met, provided it is not disputed.
What if I part-pay a debt to bring it below £750?
Reducing the outstanding balance below £750 before the petition is presented can remove the statutory basis for it, but timing matters and part-payment does not automatically stop a petition already under way. Speak to a specialist promptly if this applies to you.
Does the £750 threshold apply to every type of company debt?
It applies to ordinary debts owed by a company, including trade debts and HMRC arrears such as VAT, PAYE or corporation tax, provided the sum is due and not genuinely disputed.
Is the winding-up petition debt threshold the same across the UK?
The £750 minimum applies to companies registered in England and Wales under the Insolvency Act 1986. Scotland and Northern Ireland have broadly equivalent but separately governed insolvency regimes, so directors there should check the applicable rules.
Further detail on the winding-up process, including how petitions are advertised, is available from gov.uk's guidance on winding up a company, the statutory provisions in section 122 of the Insolvency Act 1986, and advertised notices published in The Gazette's insolvency notices.
This article is general information, not legal, financial or insolvency advice, and does not reflect your specific circumstances.
If a creditor has raised the possibility of a winding-up petition, however small the debt sounds, Harbourfirst can introduce you to a regulated insolvency practitioner or solicitor to talk it through — start an enquiry.