Credit, Collections & Insolvency News
Latest figures revealed by the Insolvency Service show that £57.5 million has been returned to the UK economy in the past year, and over 69,000 people have been supported through emergency redundancy payments. The Annual Report and Accounts show that Insolvency Service Official Receivers handled 10,817 new insolvency cases during 2024-25 , this has resulted…
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The charity behind National Debtline has responded to the Government’s decision to row back on plans to bring insolvency firms under independent regulation, calling the decision disappointing. The Money Advice Trust, which runs the free National Debtline and Business Debtline advice services, warns that the changes do not go far enough to protect people in…
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The Government has announced an overhaul of insolvency regulation to modernise the framework, which it says will increase transparency, and bolster confidence in regulation. Central to the reforms are plans to introduce new rules requiring firms offering insolvency services to be regulated, in line with other regulated sectors such as audit and legal services. Currently,…
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The Insolvency Service has issued a reprimand against the Institute of Chartered Accountants in England and Wales (ICAEW) for regulatory failings. ICAEW is one of the four Recognised Professional Bodies which regulates licenced Insolvency Practitioners in Great Britain. The reprimand relates to failures by ICAEW after restrictions were imposed on Adrian Duncan, an Insolvency Practitioner…
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Investigations launched by the Insolvency Service into directors of insolvent companies for alleged misconduct have risen 36% from an average 142 per month in 2021/22 to an average of 193 per month between April 1 and December 31 2022, shows data from international law firm, RPC. The increase in investigations is partly driven by insolvency…
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The Insolvency Service is now banning, on average, 35 directors per month for Covid Support Scheme abuse, almost treble the 12 per month banned in the previous year according to new data analysis from Mazars. The analysis shows that in the nine months of the 2022/23 year to date (1st April – 31st December 2022),…
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Directors of distressed building firm have been disqualified from running businesses by the Insolvency Service after abusing government support they were not entitled to. David Garry Harrison and Paul Hudson both received 11-year bans after they did not dispute they caused their company to apply for £100,000 worth of bounce back loans it was not…
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A maximum 15-year ban has been imposed on a company director after he posed as a fake Insolvency Practitioner. Kevin Morris, also known as Kevin Gordon Sykes, from north London has been disqualified for the maximum 15 years after he was found to be a de facto director of Rigil Kent Acquisitions Limited (RKAL), while…
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The Government has set out new proposals to reform and simplify regulation of the insolvency sector. The new consultation is inviting views on creating a single regulator for Insolvency Practitioners and extending regulation to firms that offer insolvency services. Key changes set out in the consultation include: establishing a single independent regulator to sit within…
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The Insolvency Service can now investigate and disqualify directors who dissolve their own companies in order to avoid paying liabilities. If misconduct is found, directors can face sanctions, 15-year-long bans or, in the most serious of cases, prosecution. Rogue directors who dissolve their companies and avoid paying liabilities to staff, creditors and the taxpayer can now…
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While company directors are generally protected by limited liability, recovery powers granted to HMRC in the Finance Act 2020 mean directors can face greater personal liability for tax debts held by the company in the event of insolvency. This has potentially huge ramifications for your clients if they intend to utilise an insolvency procedure to…
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