Accredited official statistics

Commentary - Company Insolvency Statistics March 2025

Published 25 April 2025

Released

25 April 2025

Next release

20 May 2025

Media enquiries

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Statistical enquiries

Gary McElroy (author)

statistics@insolvency.gov.uk

David Webster (responsible statistician)

This publication relates to company insolvency only. Statistics relating to individual insolvency can be found on the individual insolvency releases page.

1. Main messages for England and Wales

• The number of registered company insolvencies in England and Wales was 1,992 in March 2025, 2% lower than in February 2025 (2,032) but 9% higher than the same month in the previous year (1,826 in March 2024). Company insolvencies over the past 12 months have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels.

• Company insolvencies in March 2025 consisted of 295 compulsory liquidations, 1,543 creditors’ voluntary liquidations (CVLs), 137 administrations and 17 company voluntary arrangements (CVAs). There were no receivership appointments. The number of compulsory liquidations was 24% lower than the 10-year high seen in February 2025, but remained higher than both March 2024 and the 2024 monthly average. The number of CVLs in March 2025 was similar to both February 2025 and the 2024 monthly average. Administrations and CVAs were higher than in February 2025.

• One in 188 companies on the Companies House effective register (at a rate of 53.1 per 10,000 companies) entered insolvency between 1 April 2024 and 31 March 2025. This was a decrease from the 55.8 per 10,000 companies that entered insolvency in the 12 months ending 31 March 2024. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.

• While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period.

Figure 1: The total number of company insolvencies in March 2025 was slightly lower than in February 2025, driven by a decrease in compulsory liquidations.

Monthly company insolvencies by type, England and Wales, March 2020 to March 2025, seasonally adjusted

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 1a of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying comma-separated values (CSV) file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file or back to 1960 (where available) on the National Archives website.

1.1 Things you need to know about this release

This statistics release contains the latest data on company insolvency in the United Kingdom. It presents the numbers of companies that have entered a formal insolvency procedure after being unable to pay their debts. Information is presented separately for England and Wales, Scotland and Northern Ireland.

Solvent company closures such as members’ voluntary liquidations and dissolutions are not included in these statistics. Information on business closures in general can be found in the Office for National Statistics (ONS) Business demography publication.

Statistics relating to company demographics are not presented here. Information relating to the revenue, number of employees and trading location of the company is generally not held by the Insolvency Service.

Underlying data for these monthly statistics for England and Wales were adjusted using an autoregressive integrated moving average (ARIMA) model where there was evidence of seasonality. Where applicable, seasonally adjusted numbers are used and referred to throughout this commentary. The removal of systematic calendar-related variation enables comparisons to be made between months and the underlying trend in insolvency numbers to be determined. In accordance with the outcome of the April 2025 Seasonal Adjustment Review, compulsory liquidations, CVLs and administrations were all seasonally adjusted. CVAs, moratoriums, restructuring plans and receivership appointments were not seasonally adjusted due to low volumes. Similarly, all data for Scotland and Northern Ireland were not seasonally adjusted. For the series which have been seasonally adjusted, the underlying (non-seasonally adjusted) numbers can be found in Tables 1b and 1d of the accompanying tables.

All figures presented within this release are provisional and subject to review. Further detail can be found in the accompanying Company Statistics Methodology and Quality document.

Rates in this month’s publication have been calculated based on the register size in December 2024 for the period between October 2024 and March 2025. They should therefore be treated as estimates that may be revised in the future when Companies House data becomes available for these months.

1.2 Designation as accredited official statistics

These accredited official statistics were independently reviewed by the Office for Statistics Regulation (OSR) in July 2024. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled ‘accredited official statistics’.

Further details of the OSR’s review of these statistics can be found in their published Compliance Check. You are welcome to contact us directly with any comments about how we meet these standards. Alternatively, you can contact OSR by emailing regulation@statistics.gov.uk or via the OSR website.

2. Company insolvency in England and Wales

2.1 Numbers of company insolvencies

There were 1,992 company insolvencies in March 2025, slightly lower than in February 2025 but 9% higher than in March 2024. The decrease of 2% compared to February 2025 is less than the average absolute change of 12% between consecutive months over the past three years. March 2025 saw lower compulsory liquidation numbers than in February, while CVLs were at similar levels in both months.

Company insolvencies peaked during the 2008-09 recession, following the gradual decline seen over the early 2000s. Volumes rose during 2018 and 2019, before falling to the lowest monthly volumes on record during the COVID-19 pandemic in 2020 and 2021, when government support measures were in place. CVL numbers then increased in 2022, exceeding pre-pandemic levels while compulsory liquidations and administration numbers remained low. Insolvency numbers increased further in 2023 to a 30-year high, with CVLs at a record high and compulsory liquidations at levels similar to 2015-19. The 2024 total was slightly lower than 2023, as a decrease in CVLs outweighed increases in other insolvency types.

Figure 2 shows the historical trend of company insolvencies since January 2000.

Figure 2: Company insolvencies since the second half of 2022 have been at levels last seen during the 2008-09 recession.

Monthly company insolvencies by type, England and Wales, January 2000 to March 2025, seasonally adjusted

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

Single-month peaks in ‘Other insolvencies’ in November 2006 and October 2008 are due to large numbers of connected managed service companies entering administration on the same day in these months.

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 1a of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file or back to 1960 (where available) on the National Archives website.

CVLs

In March 2025, CVLs accounted for 77% of all company insolvencies. The number of CVLs increased by 1% from February 2025 and was 8% higher compared to the same month last year (March 2024).

In 2024, the annual number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.

Compulsory liquidations

Compulsory liquidations have increased in recent months. The number in March 2025 was 24% lower than the 10-year high seen in February 2025, but 5% higher than in March 2024 and 9% higher than the 2024 monthly average.

In 2024, compulsory liquidations were at the highest levels since 2014, having increased by 14% compared to 2023 volumes. This continued an increase from record low levels seen in 2020 and 2021, while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations).

Administrations

The number of administrations in March 2025 was 17% higher than in February 2025 and 30% higher than in March 2024.

In 2024, the number of administrations increased by 2% from 2023 and was slightly higher than annual totals seen between 2015 and 2019. Numbers of administrations have continued to increase since 2022 from an 18-year annual low seen during the COVID-19 pandemic in 2021.

Figure 3: The number of administrations in March 2025 was higher than in both February 2025 and March 2024.

Monthly company insolvencies by type, England and Wales, March 2020 to March 2025, seasonally adjusted

Source: Companies House

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 1a of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file or back to 1960 (where available) on the National Archives website.

CVAs

The number of CVAs in March 2025 was 2.4 times as many as in February 2025 and 89% higher than in March 2024. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.

In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average.

Receivership appointments

There were no receivership appointments in March 2025. Receivership appointments are now rare, with only three being registered in the past 12 months ending March 2025 (see Glossary for further information).

2.2 Moratoriums and restructuring plans

There was one restructuring plan registered at Companies House in March 2025. There were no moratoriums. Between 26 June 2020 and 31 March 2025, 60 companies obtained a moratorium and 36 companies had a restructuring plan registered at Companies House. The two procedures were created by the Corporate Insolvency and Governance Act 2020. Monthly numbers back to January 2022 and annual numbers back to 2020 can be found in Table 1e of the tables accompanying this release.

Table 1: Company insolvencies in March 2025 were 2% lower than in February 2025, but 9% higher than in March 2024.

Company insolvencies, England and Wales, March 2024 to March 2025, seasonally adjusted

Period	Total Company Insolvencies	Compulsory liquidations	Creditors’ voluntary liquidations	Administrations	Company voluntary arrangements	Receivership appointments
Mar 2024	1,826	281	1,431	105	9	0
Dec 2024	1,855	286	1,423	129	17	0
Jan 2025	1,977	277	1,545	141	14	0
Feb 2025	2,032	387	1,521	117	7	0
Mar 2025	1,992	295	1,543	137	17	0
Percentage change, latest month compared to:
vs Mar 2024	9%	5%	8%	30%	89%	[z]
vs Feb 2025	-2%	-24%	1%	17%	143%	[z]

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

[z] indicates percentage change is not applicable as it has not been calculated where both numbers are less than five.

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 1a of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.3 Insolvency rates per 10,000 companies on the effective register

Insolvency rates for the periods ending October 2024 and later are based on the December 2024 register size. Numbers presented in this section are therefore subject to revision once the Companies House monthly register size numbers for October 2024 to March 2025 become available. Full details, including an estimate of the impact, are available in the Methodology and Quality document.

The company liquidation rate in the 12 months to March 2025 was 53.1 per 10,000 companies on the effective register in England and Wales, as shown in Table 2 and Figure 4 below. This corresponds to one in 188 companies entering insolvency.

Insolvency rates are calculated as a proportion of the total number of companies on the effective register and are more comparable over longer time periods than the absolute numbers.

A 12-month rolling rate is presented to reduce the volatility associated with estimates based on single months. The March 2025 rates, for example, were calculated using data covering the period 1 April 2024 to 31 March 2025.

Table 2: The rate of company insolvency in the 12 months to March 2025 was lower than in the 12-month period ending March 2024.

Company insolvencies, 12-month rolling insolvency rate per 10,000 companies on the effective register, England and Wales

Period	Total Company Insolvencies	Compulsory liquidations	Creditors’ voluntary liquidations	Administrations	Company voluntary arrangements	Receivership appointments
Mar 2024	55.8	6.7	45.1	3.7	0.4	0.0
Dec 2024	52.5	7.1	41.4	3.5	0.4	0.0
Jan 2025	52.9	7.1	41.8	3.5	0.4	0.0
Feb 2025	52.4	7.3	41.2	3.4	0.4	0.0
Mar 2025	53.1	7.4	41.7	3.5	0.4	0.0
Change in rate, latest month compared to:
vs Mar 2024	-2.7	0.7	-3.4	-0.2	0.0	0.0

Source: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

Please note that total values may not equal the sum of their components due to rounding.

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 3 of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file or back to 1960 (where available) on the National Archives website.

Figure 4: The insolvency rate in the 12 months ending March 2025 was lower than in the 12 months ending March 2024.

12-month rolling insolvency rate per 10,000 companies on the effective register, England and Wales, January 2001 to March 2025

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 3 of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file or back to 1960 (where available) on the National Archives website.

Although company insolvency volumes over the past two years were at the highest levels seen since the 2008/09 recession, the number of companies on the Companies House register has increased over time. Therefore, recent insolvency rates have remained much lower than the peak rate of 113.1 insolvencies per 10,000 companies on the effective register during the 2008/09 recession. More information on the size of the Companies House register is available in Companies House Official Statistics publications.

2.4 Company insolvencies by industry (SIC 2007)

The following analysis excludes insolvencies involving non-trading and dormant companies as well as cases where the company industry was unknown (312 in the 12 months to February 2025, compared to 348 in the 12 months to February 2024). In some cases, confirmation of industry sector for compulsory liquidations may be delayed by one month or more. Therefore, insolvency numbers by industry are provided with a one-month lag.

Note that the numbers of insolvencies across industry sectors are likely to be partly driven by the number of companies on the effective register within each sector. Therefore, the insolvency volumes by industry presented here do not reflect the relative likelihood of companies in any given sector entering insolvency. SIC codes are self-reported. For these statistics, the first recorded SIC code has been used to determine the industry in which a company operates.

The five industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to February 2025 were:

• Construction (4,046, 17% of cases with industry captured),

• Wholesale and retail trade; repair of motor vehicles and motorcycles (3,607, 15% of cases with industry captured),

• Accommodation and food service activities (3,405, 14% of cases with industry captured),

• Administrative and support service activities (2,367, 10% of cases with industry captured), and

• Manufacturing (1,974, 8% of cases with industry captured).

Figure 5: For most sectors, the numbers of insolvencies in the 12 months to February 2025 were similar to or lower than those in the 12 months to February 2024.

Company insolvency by industry, England and Wales, March 2024 to February 2025 compared with March 2023 to February 2024

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

Monthly numbers by 3-level Standard Industrial Classification back to January 2022 and annual numbers back to 2015 can be found in Table 1c of the tables accompanying this release. Record level data back to 2015 also accompanies the monthly release.

Quarterly data back to 1990 is on the National Archives website.

Insolvency numbers by industry sector show a slight decrease in insolvency numbers for most sectors. For all five of the largest sectors (accounting for two-thirds of all insolvencies), numbers were lower in the 12 months to February 2025 than in the preceding 12 months. Decreases ranged from 0.5% in Manufacturing to 11% in Accommodation and food service activities.

3. Company insolvency in Scotland

In March 2025, there were 118 company insolvencies registered in Scotland, 3% higher than the number in March 2024. The total number of company insolvencies was comprised of 55 CVLs, 57 compulsory liquidations and six administrations. There were no CVAs or receivership appointments.

Legislation relating to company insolvency in Scotland is partly devolved. Accountant in Bankruptcy (AiB), Scotland’s insolvency service, administers the Register of Insolvencies, a publicly accessible statutory register regarding the insolvency of individuals and businesses in Scotland. The Register includes company liquidations and receiverships.

This statistical release presents the numbers of compulsory liquidations, CVLs, administrations, CVAs and receivership appointments in Scotland based on their registration date at Companies House. Numbers therefore reflect company insolvency registrations rather than insolvency procedure start dates.

Historically, compulsory liquidations were the most common type of company insolvency in Scotland. However, since April 2020, numbers of CVLs have typically remained higher than numbers of compulsory liquidations.

Figure 6 shows the historical trend of company insolvencies in Scotland covering the past five years.

Figure 6: The total number of company insolvencies in Scotland was slightly higher in March 2025 than in March 2024.

Monthly company insolvencies by type, Scotland, March 2020 to March 2025, not seasonally adjusted

Source: Companies House

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 4a of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file.

Further breakdowns of company insolvencies by Standard Industrial Classification (SIC 2007) are also presented to three-digit level in Table 4b of the tables accompanying this release.

More statistics can be found in the AiB (Scotland’s insolvency service) statistical release.

Between 26 June 2020 and 31 March 2025, there were three restructuring plans and one moratorium in Scotland. The two procedures were created by the Corporate Insolvency and Governance Act 2020.

Insolvency rates for the periods ending October 2024 and later are based on the December 2024 register size. Numbers presented in this section are therefore subject to revision once the Companies House monthly register size numbers for October 2024 to March 2025 become available. Full details, including an estimate of the impact, are available in the Methodology and Quality document.

The total insolvency rate in Scotland in the 12 months to March 2025 was 51.7 per 10,000 companies on the effective register, as shown in Figure 7. This was down by 1.4 from the preceding 12 months ending March 2024.

Figure 7: The insolvency rate in Scotland decreased in the 12 months to March 2025 compared to the 12 months to March 2024.

12-month rolling insolvency rate per 10,000 companies on the effective register, January 2001 to March 2025, Scotland

Source: Companies House

Monthly numbers back to January 2022 and annual numbers back to 2015 can be found in Table 5 of the tables accompanying this release. The monthly series back to January 2000, as well as record-level data back to 2015, can be found in the accompanying CSV file at the same link.

Quarterly data prior to 2000 can be found in the long-run company insolvencies CSV file.

More statistics can be found in the AiB (Scotland’s insolvency service) statistical release.

4. Company insolvency in Northern Ireland

In March 2025 there were 29 company insolvencies registered in Northern Ireland, 12% higher than in March 2024. The total number of company insolvencies was comprised of nine compulsory liquidations, 12 CVLs, two CVAs and six administrations. There were no receivership appointments.

This statistical release presents the numbers of CVLs, administrations, CVAs and receivership appointments based on their registration date at Companies House. Therefore, numbers reflect company insolvency registrations rather than insolvency procedure start dates.

Figure 8: The number of company insolvencies in Northern Ireland was 12% higher in March 2025 than in March 2024.

Monthly company insolvencies by type, Northern Ireland, March 2020 to March 2025, not seasonally adjusted

Sources: Department for the Economy, Northern Ireland (compulsory liquidations only); Companies House (all other insolvency procedures)

Monthly numbers back to January 2022 and annual numbers back to 2019 can be found in Table 6 of the tables accompanying this release. The monthly series back to October 2009 (where available) can be found in the CSV file that also accompanies this release.

Between 26 June 2020 and 31 March 2025, there was one moratorium in Northern Ireland. There were no restructuring plans. The two procedures were created by the Corporate Insolvency and Governance Act 2020.

Insolvency rates for the periods ending October 2024 and later are based on the December 2024 register size. Numbers presented in this section are therefore subject to revision once the Companies House monthly register size numbers for October 2024 to March 2025 become available. Full details, including an estimate of the impact, are available in the Methodology and Quality document.

The total insolvency rate in the 12 months to March 2025 in Northern Ireland was 35.4 per 10,000 companies on the effective register, as shown in Figure 9. This is an increase of 1.5 from the 12 months to March 2024.

Figure 9: The insolvency rate in Northern Ireland was higher in the 12 months to March 2025 than in the preceding 12 months.

12-month rolling insolvency rate per 10,000 companies on the effective register, January 2020 to March 2025, Northern Ireland

Sources: Department for the Economy, Northern Ireland (compulsory liquidations only); Companies House (all other insolvency procedures)

Monthly numbers back to January 2022 and annual numbers back to 2019 can be found in Table 7 of the tables accompanying this release. The monthly series back to October 2010 (where available) can be found in the CSV file that also accompanies this release.

5. Data and methodology

5.1 Data sources

Company insolvency data were sourced from Companies House, except for compulsory liquidation data for England and Wales, which were sourced from the Insolvency Service administrative systems, and compulsory liquidation data for Northern Ireland, which were sourced from the Department for the Economy in Northern Ireland.

To calculate insolvency rates, Companies House data were used to determine the number of companies on the effective register in each month. These data are separately published by Companies House on the Gov.uk website on a quarterly basis. Rates for intermediate months are based on the register size from Companies House management information, which is subject to revision.

More information on the administrative systems used to compile insolvency statistics can be found in the accompanying Methodology and Quality document.

5.2 Methodology and data quality

Detailed methodology and quality information for these statistics can be found in the accompanying Methodology and Quality document.

The main quality and coverage issues to note:

1. Numbers are provided at a national (England and Wales, Scotland and Northern Ireland) level only. Data on location is not provided, because address information held by the Insolvency Service relates to the address of the company on the Companies House register at the time of insolvency. This is often the address of an insolvency practitioner, a head office or a virtual office, which does not reflect the location at which the company traded before its insolvency.

2. It is a legal requirement that all formal insolvency procedures into which a company enters should be reported to the appropriate body. These statistics aim to be a complete record of registered company insolvencies. Solvent company closures such as members’ voluntary liquidations and dissolutions are not included in these statistics. Information on business closures in general can be found in the ONS Business demography publication.

3. Insolvency Service data for the most recent month were extracted approximately five working days after month end and may be revised in the future. In particular, some compulsory liquidations for the latest month may not yet have been entered onto the administrative system at the time of data extraction.

4. Industry breakdowns are reported one month in arrears. This is because for compulsory liquidations, the industry of the company may not be recorded until several weeks after the insolvency date.

5. Bulk CVLs during the period 2016 to 2019 (see Glossary) have been removed from numbers presented in these statistics. Numbers with bulk CVLs included can be found in Table 1d of the accompanying tables.

Seasonal adjustment

Underlying data for these monthly statistics for England and Wales were adjusted using an ARIMA model where there was evidence of seasonality. The ARIMA model removes systematic calendar-related variation in the time series. This enables comparisons to be made between months and underlying trends in insolvency numbers to be determined. In accordance with the outcome of the April 2025 Seasonal Adjustment Review, compulsory liquidations, creditors’ voluntary liquidations (CVLs) and administrations were all seasonally adjusted.

Seasonal adjustment in this publication typically results in numbers being adjusted by up to 10%. There are a few cases where the adjustment is larger. For example, compulsory liquidation numbers tend to be 20-30% lower during April, which often contains Easter. Therefore, when Easter is in April, the process of seasonal adjustment increases the April compulsory liquidation numbers by approximately 20-30% to correspond to the underlying trend.

For Scotland and Northern Ireland, only the unadjusted series have been presented, as agreed with the appropriate officials in the devolved administrations.

Rates of insolvency

Insolvency rates were calculated for England and Wales, Scotland and Northern Ireland. The total number of companies entering insolvency in each location during the previous twelve months was divided by the mean average number of all companies on the effective Companies House register in that location in the same twelve-month period.

Insolvency rates for the periods ending October 2024 and later are based on the December 2024 register size. Numbers presented in this section are therefore subject to revision once the Companies House monthly register size numbers for October 2024 to March 2025 become available. Full details, including an estimate of the impact, are available in the Methodology and Quality document.

5.3 Revisions

These statistics are subject to revisions, as set out in the published Revisions Policy. Revisions tend to be made when data is entered into administrative systems after the cut-off date for data extraction to produce the statistics. In addition, as the ARIMA model used is updated with additional data each month, seasonally adjusted numbers are revised in subsequent publications. Revisions are noted in the accompanying data tables, except those resulting from changes to the seasonal adjustment model.

6. Glossary

6.1 Key terms used within this statistical bulletin

Term	Definition
Administration	The objective of administration is to rescue the company as a going concern, or, if this is not possible, to obtain a better outcome for creditors than would be likely if the company were to be wound up. A licensed insolvency practitioner, ‘the administrator’, is appointed to manage a company’s affairs, business and property for the benefit of the creditors.
ARIMA model	Autoregressive integrated moving average, or ARIMA, is a model fitted to time-series data to understand the underlying trend or to forecast future data points. In this publication, ARIMA models with both non-seasonal and seasonal components are fit to insolvency data. The model removes the seasonal component of the data, including effects resulting from the time of year, as well as the varying number of trading days in different months. This allows month-to-month comparisons to be made.
Bulk creditors’ voluntary liquidation	IR35 rules are intended to prevent the avoidance of tax and National Insurance contributions using personal service companies and partnerships. Between April 2016 and early 2019, following changes to the IR35 rules and/or changes in VAT flat rate, some directors of personal service companies had cited these changes as the primary reason that their company’s activities had become unviable. This led to large numbers of creditors’ voluntary liquidations (CVLs) among these companies, a phenomenon referred to as “bulk insolvencies”.
Company voluntary arrangement (CVA)	Company voluntary arrangements (CVAs) are another mechanism for business rescue. They are a voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of creditors, the arrangement is binding on all creditors. CVAs are supervised by licensed insolvency practitioners.
Compulsory liquidation	A winding-up order obtained from the court by a creditor, shareholder or director. See ‘Liquidation’ for details on the process.
Creditors’ voluntary liquidation (CVL)	Shareholders of a company can themselves pass a resolution that the company be wound up voluntarily. See ‘Liquidation’ for details on the process. Administrations which result in a creditors’ voluntary liquidation (CVL) are recorded separately by Companies House and are excluded from CVL figures, as they do not represent a new company entering into an insolvency procedure for the first time. These cases are only ever recorded as administrations.
Liquidation	Liquidation is a legal process in which a liquidator is appointed to ‘wind up’ the affairs of a limited company. The purpose of liquidation is to sell the company’s assets and distribute the proceeds to its creditors. At the end of the process, the company is dissolved – it ceases to exist. Statistics on compulsory liquidations and creditors’ voluntary liquidations are presented in these statistics. A third type of winding up, members’ voluntary liquidation, does not involve insolvency. Therefore, members voluntary liquidations are not included here.
Moratorium	Moratoriums were introduced under the Corporate Insolvency and Governance Act 2020 to give struggling businesses formal breathing space in which to explore rescue and restructuring options, free from creditor or other legal action. Except in certain circumstances, no insolvency proceedings can be instigated against the company during the moratorium period. A moratorium also prevents legal action being taken against a company without permission from the court.
Receivership appointments	Administrative receivership occurs when a creditor with a floating charge (often a bank) appoints a licensed insolvency practitioner to recover the money owed to them. Before 2000, receivership appointments could also involve non-insolvency procedures, such as those under the Law of Property Act 1925. The use of this procedure is restricted to certain types of companies, or to floating charges, created before September 2003.
Restructuring plan	New restructuring measures were introduced under the Corporate Insolvency and Governance Act 2020 to support viable companies struggling with unmanageable debt obligations to restructure under a new procedure. They allow the court to sanction a plan that binds creditors to a restructuring plan if it is fair and equitable. Creditors vote on the plan, but the court can impose it on dissenting classes of creditors (‘cram down’) provided that the necessary conditions are met.
Standard Industrial Classification (SIC 2007)	Used in classifying business establishments and other statistical units by the type of economic activity in which they are engaged. Further information can be found on the ONS website.