Online estate agency Purplebricks has been hit with a winding-up petition from HM Revenue & Customs (HMRC), although the company says the matter was caused by an administrative mistake and has since been resolved.
The petition was filed with the court on Tuesday, according to legal documents. Purplebricks said it had already been communicating with HMRC about the issue but was only made aware of the legal action after the petition had been submitted.
A spokesperson for the company said its outstanding tax obligations had been dealt with and that HMRC was now withdrawing the petition.
Accountancy firm BK Plus has also described the situation as an administrative error, stating that the issue with HMRC had been resolved.
Annual Accounts Still Outstanding
The HMRC petition comes as Purplebricks remains behind on filing its annual accounts for the financial year ending March 2025.
The company has previously blamed the delay on the appointment of a new chief financial officer and says it expects the accounts to be submitted shortly.
The delay adds another development for the estate agency as its new management team continues efforts to improve the business.
Purplebricks’ Changing Fortunes
Purplebricks was established in 2012 by brothers Michael and Kenny Bruce, initially offering an online estate agency model based around fixed fees.
The company went on to float on the London Stock Exchange and was once valued at around £1.3 billion.
However, its financial position deteriorated following an unsuccessful international expansion. In 2023, Strike acquired Purplebricks and its assets for a nominal £1.
Sir Charles Dunstone, who backs Strike, later became an investor in Purplebricks.
Company Says Turnaround Is Underway
Despite the HMRC petition and delayed accounts, Purplebricks says its business is continuing to grow under its new leadership.
The company says management has made significant progress with its turnaround strategy and that growth is being seen across different areas of the business.
Purplebricks added that it remains focused on improving its service for customers while continuing to develop its position within the UK estate agency market.
HMRC Explains Its Approach
HMRC says winding-up petitions are generally used only after other attempts to recover tax debts have been exhausted.
The tax authority has stated that it aims to support customers dealing with tax liabilities and will consider legal action when other methods of recovering outstanding amounts have not worked.
In Purplebricks’ case, the company maintains that its tax liability has been dealt with and that the winding-up petition is being withdrawn.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property