Purplebricks has been hit with a winding-up petition from HM Revenue & Customs (HMRC) – but the online estate agent has insisted the action was triggered by an administrative error and that its tax liabilities have been dealt with.
The company was served with the court petition by HMRC on Tuesday, according to legal filings, in a move Purplebricks said was connected to an “admin error”. The estate agent said it was already in discussions with the tax authority when the petition was filed and claimed it only became aware of the action after it had been submitted.
Company response
A spokesman said: “We were surprised by the petition from HMRC. We were in active dialogue on an admin error and only became aware of the filing of the petition once it had been submitted. To be clear, our liability for taxes as they are due have been dealt with and the petition is being withdrawn.”
A letter from Purplebricks’ accountants, BK Plus, also said the “position with HMRC is an administration error and the matter has been resolved”.
Winding-up petitions
Winding-up petitions are generally filed by HMRC over tax bills which have remained unpaid for more than 21 days. While such action can ultimately result in the forced sale of a company’s assets, most cases are settled with the taxman before reaching that stage.
Purplebricks, which is backed by entrepreneur Sir Charles Dunstone, hit back at HMRC over the speed with which the petition was filed.
Financial position
The development comes as questions have also been raised about the company’s financial position after it failed to file its annual accounts for the year ending March 2025 on time. A spokesman for the company said the delay was because a new chief financial officer had been appointed and that Purplebricks was planning to file the accounts in the coming week.
Purplebricks was founded in 2012 by brothers Michael and Kenny Bruce and became prominent by offering flat-fee property sales as a challenger to traditional high-street estate agents.
The company was previously backed by fund manager Neil Woodford and was listed on the London stock market with a valuation of £1.3 billion. It later ran into financial difficulties following an expansion into Australia, reported The Telegraph.
Sir Charles, who also backs broadband operator TalkTalk, subsequently took a stake in Purplebricks through his Strike venture in a deal with a nominal value of £1. The company said its new management team was now making progress with its turnaround.
“Our new leadership team have made big strides in the turnaround of Purplebricks and we are experiencing growth in all areas of the business.
“We remain fully focused on delivering for our customers and continuing to be the most innovative estate agency business in the UK.”
HMRC said it only takes winding-up action after other avenues have been exhausted.
An HMRC spokesman said: “We take a supportive approach to dealing with customers who have tax debts and only file winding-up petitions once we’ve exhausted all other options, in order to protect taxpayers’ money.”
