The latest figures from the Insolvency Service show a significant increase in company investigations and director disqualifications, as the organisation takes a more proactive approach to tackling corporate misconduct.
For business owners and directors, the report is a useful reminder that company information and director conduct are coming under increasing scrutiny, particularly as the Insolvency Service works more closely with Companies House and makes greater use of the information available to it.
What does the Insolvency Service do?
The Insolvency Service deals with insolvency and bankruptcy cases, investigates potential misconduct and takes action where directors or companies have acted improperly. It also plays a key role in supporting Companies House reforms and tackling fraud and economic crime.
Its latest Insolvency Service Annual Report and Accounts 2025–26 provides an insight into the scale of this activity and the areas currently receiving particular attention.
Key figures for 2025-26
Between 1 April 2025 and 31 March 2026, the Insolvency Service:
- Handled 11,515 insolvency cases;
- Processed 70,633 redundancy payments;
- Carried out 185 company investigations;
- Disqualified 1,153 directors;
- Brought 130 criminal prosecutions; and
- Returned £42.7 million to the economy.
Greater scrutiny of companies and directors
Live company investigations rose by a notable 39.1% during the year. This reflects a move towards more proactive, intelligence-led enforcement, supported by new powers under the Economic Crime and Corporate Transparency Act 2023, which significantly expanded the Service’s role as an enforcement partner for Companies House.
This means the Insolvency Service is making greater use of information already held by Companies House. Improved data sharing gives investigators a clearer picture of directors, company addresses and filing patterns, helping them identify potentially suspicious activity at an earlier stage.
The Service received 169 Intelligence Reports from Companies House in 2025–26, compared with 138 the previous year.
For directors, this reinforces the importance of ensuring that information filed at Companies House is accurate, complete and kept up to date.
Continued focus on COVID-19 support scheme misconduct
Misuse of COVID-19 financial support schemes remains a significant area of enforcement activity.
During 2025–26, 65% of the Insolvency Service’s disqualification and criminal outcomes related to COVID-19 financial support scheme misconduct.
This included:
- 773 director disqualification outcomes;
- 55 bankruptcy and debt relief restrictions; and
- 31 criminal convictions, resulting in 25 custodial sentences.
The figures demonstrate that investigations into support scheme misuse continue several years after the schemes themselves were introduced.
Tackling the misuse of company structures
Another area receiving increased attention is the misuse of company structures to avoid debts or defraud creditors, sometimes referred to as ‘abusive phoenixism’.
The government allocated £25 million over five years in the 2025 Autumn Budget to fund 50 additional posts focused on tackling director misconduct, including this area.
During 2025–26, the Insolvency Service completed 148 civil investigations into companies where it identified this type of misconduct. At the end of the year, a further 64 companies were subject to civil or criminal investigations.
These investigations resulted in:
- 18 companies being shut down;
- 87 directors being disqualified; and
- Five directors being convicted of criminal offences.
How M+A Partners can help
The report highlights a wider shift towards earlier identification of potential misconduct and greater use of information to support investigations.
Keeping accurate financial records, staying on top of filing requirements and maintaining up-to-date Companies House information can help businesses meet their responsibilities and demonstrate good governance. We can support with accounts, tax, reporting and wider business advice, helping businesses stay on top of their obligations.
Please get in touch with your usual M+A Partners’ contact or with me using the details below.
