August 2021 saw the number of company insolvencies reach their highest level since the first UK lock

There were 1,348 registered company insolvencies in August 2021, according to figures released by the Insolvency Service – 71% higher than in the same month in the previous year, but 1% lower than the pre-pandemic figure in August 2019.

August 2021 saw 1,256 Creditors’ Voluntary Liquidations (CVLs), the highest level seen since January 2019, more than double the number in August 2020 and 30% higher than in August 2019. Other types of company insolvencies, such as compulsory liquidations, remain comparatively low, driven in part by temporary restrictions on the use of statutory demands and certain winding-up petitions, and enhanced financial support for companies and individuals, the Insolvency Service said.

Restrictions imposed during the pandemic that prevent companies from serving winding-up petitions against debtors will ease after this month, the government stated last week.

Related Post

Reeves urged to abolish the £175,000 residence nil-rate band The Chancellor is facing pressure to eliminate the £175,000 residence nil-rate band in her upcoming Budget. Rachel Reeves previously argued that this allowance, which costs around £2bn annually, primarily benefits the wealthy and now the Resolution Foundation is pushing her to scrap it. In 2011, she stated: “Raising the inheritance tax limit to £1m for […] By Lisa Brownlow, 18 September 2024
Read Now
Small firms responsible for 80% of tax evasion Analysis by the National Audit Office (NAO) shows that small firms are responsible for more than 80% of tax evasion. The report cites HMRC estimates that £5.5bn was lost to deliberate tax evasion in the 2022/23 financial year, with small businesses responsible for 81% of the total. Despite a reduction in the overall tax gap […] By Lisa Brownlow, 16 September 2024
Read Now
Threshold freeze creates 4.4m more taxpayers The number of people paying income tax has increased by 4.4m in three years due to the freeze on thresholds, according to HMRC data. The figures also show that the decision to freeze the personal threshold at £12,570 has pulled an additional 1.77m pensioners into the income tax bracket. There are currently an estimated 37.4m […] By Lisa Brownlow, 3 July 2024
Read Now
↑