HMRC petitions to wind up Mortgage Times

4 January 2010 | By Natalie Thomas

HM Revenue & Customs is petitioning to wind-up The Mortgage Times Group and will have its case heard at The Royal Courts of Justice in London next week.

HMRC claims it is a creditor and issued the petition as early as November 12 2009, documents in The London Gazette reveal.

The documents show in the matter of The Mortgage Times Group Limited and in the matter of the Insolvency Act 1986 a petition to wind up the firm was presented on November 12 2009 by the commissioners for HM Revenue and Customs.

A spokeswoman for HMRC says it cannot comment on individual companies for legal reasons.

But she says: “Our aim is not to wind up companies or make individuals bankrupt, but to collect, as efficiently as we can, the debts that are due.

“HMRC only initiates winding up or bankruptcy action where it believes this is the best course of action to protect the interests of the Exchequer in respect of a particular debt.”

On December 21 Mortgage Strategy revealed that staff of Mortgage Times had been told by management that the firm had been placed into administration and they would not be paid, but no administration documents have yet been filed.

On the same day appointed representatives were sent an email by The Mortgage Times Group board saying they may no longer carry on any regulated business.

The board claimed a potential major investor had pulled out at the 11th hour, which subsequently forced it to cease trading.

Readers' comments (46)

Anonymous | 4 Jan 2010 6:02 pm
Yet more smoke and mirrors from an ailing network in the run up to it failing meaning that by the time the AR's were aware of anything it was too late. Had they known in November perhaps the AR's could have limited the damage slightly.
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Anhar Ali | 4 Jan 2010 8:01 pm
HMRC are not doing financial industry a favour. They will not be able to collect a single penny because the Mortgage Times does not have any assets. Instead HMRC should have sat down and see how they could save the company. If they did that then lots people would still be employed and mortgage brokers would trading and a third party could saved the company. In that way they would have collected lot more taxes. I never understood the tax man or the woman!!!!! HMRC has deterred potential rescurer to come forward and take over the company.
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Andrew Botte | 4 Jan 2010 9:43 pm
What a sad day. I feel genuine sorrow for Chris May and his fellow Director's as well as all AR's.

Mortgage Times Group in good times was a formidable business with a great management team.

Unfortunately due to market conditions and a lack of funding many businesses have been caught out. It's just that MT stands out being one of the major players.

I for one am sad to see such a power house go and hope that the management team will come back in better times with a new leaner network proposition. I'm sure there is still a lot of support for the very nice former team of Mortgage Times and I speak as a former AR.
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Terry Pritchard | 5 Jan 2010 0:55 am
I am saddened to see another of our former colleagues in this position. I have over the years come to respect some of the people at Mortgage Times and I know that they never set out to cause anyone harm or loss. Their decisions may not have suited everyone but what would we all do given the circumstances they found themselves in. My comments are in no way a defence of their actions meerly a request we take into account all the facts not just what we read or are told by some with an axe to grind. The old saying is "let he who is without sin cast the first stone", I don't think I can see too many people doing that!
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Rob Rivers | 5 Jan 2010 9:31 am
I'm afraid some people live in cloud cuckoo land, Chris May and the rest of the conspirators, new for a very long time, what was happening and led a lot of people, up the garden path. My support is with the people and particularly AR's, that had the foresight to get out earlier, rather than later. To some degree the people who can't see the wood for the tree's and hung on until it was far too late, should bear some responsibility, for making the problem worse, by pouring more commissions through a non return valve.
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blowme | 5 Jan 2010 10:51 am
I can't believe you lot kept falling for the excuses MT put out, honestly guys, get real.

A fool and his money are easily parted - and to think you lot offer the public advise on their finances - why didn't you just turn up at the London office and square up to Paul and Chris, demand what was rightfully yours and not leave until you were paid.
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Brutus | 5 Jan 2010 11:21 am
I feel sorry for Chris May and the other directors.

Now the information about the petition is in the public domain, it will be very difficult to justify the Mortgage Times trading after it became clear they could not pay HMRC the amount owed.

This is likely to mean that Chris May and the other directors will be responsible under s214 of the Insolvency Act 1986 for making a contribution towards the asset pool.

Given that they own million pound mansions in Kent and Surrey I would expect authorised representatives to begin pursuing them. This seems fair given that it was their misrepresentations of the situation which encouraged authorised representatives to continue to pay membership fees and put business through the books of the Mortgage Times Group Limited.

One wonders whether the decision of all the Mortgage Times directors to change their details on the Companies House register on 14 October 2009 was linked to the HMRC petition. HMRC normally provides 28 clear days notice before starting proceedings. The 14 October 2009 was 28 days before HMRC issued proceedings.

I also wonder whether the directors will face any kind of inquiry from the FSA to ensure that they have acted in a fit and proper manner. At this time they are free to start another business.
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blowme | 5 Jan 2010 12:41 pm
I look forward to seeing what the Directors set up next - we all have a short memory and lets not forget that MT was a great network to belong to and they are simiply just another unfortunately firm to go under in these difficult times.

Don't bother raising the subject of how much their houses are worth, thats petty and school boy antics. We all have bills to pay so lets just get on with what we do best.
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snowy | 5 Jan 2010 12:46 pm
has anyone been down to the office - I'm happy to take my commission via their computer software and that fancy plasma tv in the reception
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fed up | 5 Jan 2010 12:54 pm
I'm going down to the office and will take what is owed, I'm not sitting on my arse and waiting for the FSA - if I leave with 6 or 7 PCs and laptops I might be able to recoup some commission in the stores along Tottenham Crt Rd - might see you all there
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