Accredited official statistics

Commentary - Company Insolvency Statistics October to December 2021

Published 28 January 2022

Released

28 January 2022

Next release

28 April 2022

Media enquiries

Steven Fifer

+44 (0)30 3003 1568

Statistical enquiries

David Webster (author)

statistics@insolvency.gov.uk

Kate Palmer (responsible statistician)

1. Main messages for England and Wales

1.1 Annual 2021

• One in 304 active companies (at a rate of 32.9 per 10,000 active companies) entered liquidation in 2021. This was an increase from the 29.4 per 10,000 active companies that entered liquidation in 2020, but remained lower than the 41.9 per 10,000 in 2019.

• The total number of company insolvencies registered in 2021 was 14,048, which was higher than the 12,634 in 2020, but remained below pre-pandemic levels.

• The increase compared to 2020 was driven by the highest annual number of Creditors’ Voluntary Liquidations (CVLs) since 2009. However, the number of CVLs in 2021 was only slightly higher than in 2019 and was consistent with the increasing trend in CVL numbers before the coronavirus (COVID-19) pandemic.

• All other types of company insolvencies were lower than both 2020 and pre-pandemic levels. The annual number of compulsory liquidations was the lowest since the start of the series in 1960.

• Increases in insolvencies were seen across most industries in 2021 compared to 2020. Several sectors showed increases above the overall annual increase of 11%, including Professional, scientific and technical activities (up 35%) and Construction (up 25%).

1.2 Quarterly Q4 2021

• Between 1 October and 31 December (Q4) 2021, there were 4,627 (seasonally adjusted) registered company insolvencies, as shown in Figure 1, comprised of 4,175 creditors’ voluntary liquidations, 147 compulsory liquidations, 272 administrations, and 33 company voluntary arrangements (CVAs). There were no receivership appointments.

• In Q4 2021, after seasonal adjustment, the number of company insolvencies was 18% higher than in Q3 2021 and 51% higher than in Q4 2020. This was driven by an increase in CVLs to the highest quarterly level since the series began in 1960. The increase in CVLs in the second half of 2021 coincided with the phasing out of measures put in place to support businesses during the coronavirus pandemic.

• Numbers for other company insolvency procedures registered in Q4 2021 were higher than the previous quarter (Q3 2021) but remained low compared to pre-pandemic levels.

Figure 1: Registered company insolvencies increased in Q4 2021 to the highest quarterly level since Q3 2012, driven by an increase in CVLs.

England and Wales, Q4 2011 to Q4 2021, seasonally adjusted

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

The long-term series back to Q1 1984 (where applicable) can be found in the CSV file that accompanies this release. Data back to 1960 for liquidation numbers can be found at the Insolvency Statistics Archive.

From the start of the coronavirus (COVID-19) pandemic until mid-2021, numbers of company insolvencies were low when compared with pre-pandemic levels. Compulsory liquidation, administration and CVA numbers remained lower throughout 2021. This is likely to have been driven in part by Government fiscal and other measures that were put in place to support businesses and individuals, including:

• Temporary restrictions on the use of statutory demands and certain winding-up petitions (leading to company compulsory liquidations).
• Enhanced government financial support for companies and individuals.

On 30 September 2021, some of the temporary Government measures either ended or were replaced by new tapering measures. The percentage of government contribution to employee wages through the Coronavirus Job Retention Scheme (furlough), decreased from 1 July 2021, with the scheme ending on 30 September 2021.

2. Things you need to know about this release

This statistics release contains the latest data on company insolvency in the UK, presenting the numbers of companies who 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.

The Insolvency Service separately publishes monthly statistics to provide more up to date information on the numbers of company and individual insolvencies during this time of economic uncertainty. However, they have not replaced the quarterly National Statistics, since the information presented on a monthly basis is less granular and is less reliable for monitoring changes in trends over time. Note that the monthly statistics on company insolvencies may not be consistent with data presented within this statistical release.

Underlying data for these quarterly statistics for England and Wales were adjusted where there was evidence of seasonality, to account for variation in company insolvencies across the year and allow for comparison to the most recent period within years. Data for Scotland and Northern Ireland were not adjusted. The seasonal adjustment models are typically reviewed on an annual basis. However, the trend in individual insolvencies during the 2020/21 financial year reflected a very different pattern to that seen in previous years; largely a result of the coronavirus (COVID-19) pandemic. Therefore the 2021 review was not conducted, and 2021 data continues to be seasonally adjusted using the 2020 model. See methodology section for further details.

Quarters referred to in this publication are calendar year quarters, such that Q4 2021 is the period from 1 October to 31 December 2021.

2.1 Designation as National Statistics

The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Statistics. Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

The last compliance review was conducted in July 2019.

Designation can be broadly interpreted to mean that the statistics meet identified user needs; are well explained and readily accessible; are produced according to sound methods, and are managed impartially and objectively in the public interest.

3. Company insolvency in England and Wales

3.1 Numbers of company insolvencies: annual summary

The total number of company insolvencies registered in 2021 was 14,048, which was higher than the 12,634 in 2020, but remained below pre-pandemic levels. As can be seen in Table 1, this was a result of two conflicting trends. The number of CVLs in 2021 was the highest annual number since 2009, but numbers for other insolvency types were much lower than both 2020 and pre-pandemic levels.

The long-term series prior to 2017 can be found in the Excel and CSV files that accompany this release

Table 1: The total number of registered company insolvencies in 2021 was higher than 2020, but lower than recent pre-pandemic levels.

England and Wales, 2017 to 2021

Year	Total company insolvencies	Compulsory liquidations	CVLs	Administrations	CVAs	Receiverships
2017	14,568	2,746	10,197	1,316	307	2
2018	16,049	3,087	11,143	1,463	355	1
2019	17,166	2,943	12,058	1,813	351	1
2020	12,634	1,353	9,491	1,527	260	3
2021	14,048	475	12,661	796	115	1
Percentage change, 2021 compared with:
2020	11%	-65%	33%	-48%	-56%	[z]
2019	-18%	-84%	5%	-56%	-67%	[z]

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

[z] indicates percentage changes are not applicable as these have not been calculated where both numbers are less than five.

CVLs

The overall increase in company insolvencies in 2021 was driven by a rise in CVLs, which increased by 33% from 2020 to the highest annual number since 2009. They accounted for 90% of all company insolvencies. However, the number of CVLs in 2021 was only slightly higher than in 2019 and was consistent with the increasing trend in CVL numbers before the coronavirus (COVID-19) pandemic. The majority of CVLs (62% after seasonal adjustment) were registered in the second half of the year.

The increase in CVLs in the second half of 2021 coincided with the phasing out of measures put in place to support businesses during the coronavirus pandemic. For example, the percentage of government contribution to employee wages through the Coronavirus Job Retention Scheme (furlough), decreased from 1 July 2021, with the scheme ending on 30 September 2021. The suspension of wrongful trading liability, which allowed directors to continue trading without facing the threat of personal liability despite uncertainty that their company may not be able to avoid insolvency in the future, ended on 30 June 2021.

Compulsory liquidations

The number of compulsory liquidations in 2021 was 65% lower than in 2020 and less than one-sixth of the number in 2019. The annual number was the lowest since the start of the series in 1960. This is likely to have been driven in part by Government fiscal and other measures that were put in place to support businesses and individuals, including, temporary restrictions on the use of statutory demands and certain winding-up petitions (leading to company compulsory liquidations).

On 30 September 2021, some of the temporary Government measures either ended or were replaced by new tapering measures. Until 31 March 2022, the debt threshold for a winding-up petition is £10,000 instead of £750 and creditors are required to provide debtor businesses 21 days to provide proposals for payment before they can proceed with winding up action.

Administrations

The number of administrations in 2021 was 48% lower than in 2020, and 56% lower than in 2019. The annual number was the lowest since 2003.

CVAs

The number of administrations in 2021 was 56% lower than in 2020, and less than one-third of the number in 2019. The annual number was the lowest since 1993.

Receivership appointments

There was one receivership appointment in 2021. Receivership appointments are now rare (see Glossary for more information).

3.2 Number of company insolvencies: quarterly summary

After seasonal adjustment (where applicable), there were 4,627 company insolvencies registered in Q4 2021, 18% higher than the number of company insolvencies registered in the previous quarter and 51% higher than during the same quarter in the previous year. The quarterly number of company insolvencies was the highest since Q3 2012.

Creditors’ voluntary liquidations (CVLs) were the most common company insolvency procedure (90% of cases), followed by administrations (6% of cases), compulsory liquidations (3% of cases) and company voluntary arrangements (CVAs; 1% of cases). There were no receivership appointments, which are now rare (see Glossary for further details).

A summary of company insolvencies since Q4 2020 can be found in Table 2 below. The long-term series prior to Q4 2020 can be found in the Excel and CSV files that accompany this release.

Unlike the monthly statistics, quarterly statistics are seasonally adjusted to account for seasonal variation in insolvencies across the year and allow for comparison to the most recent period within years.

Table 2: The total number of registered company insolvencies in Q4 2021 was the highest since Q2 2012, driven by an increase in CVLs to the highest number since the series began in 1960.

England and Wales, Q4 2020 to Q4 2021, seasonally adjusted

	Total company insolvencies	Compulsory liquidations	CVLs	Administrations	CVAs	Receiverships
2020Q4	3,065	148	2,492	344	81	0
2021Q1	2,386	116	2,045	188	37	0
2021Q2	3,103	102	2,808	167	25	1
2021Q3	3,932	110	3,634	168	20	0
2021Q4	4,627	147	4,175	272	33	0
Percentage change, latest quarter (Q4 2021) compared with:
vs 2021Q3	18%	34%	15%	62%	65%	[z]
vs 2020Q4	51%	-1%	68%	-21%	-59%	[z]

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

[z] indicates percentage changes are not applicable as these have not been calculated where both numbers are less than five.

CVLs

The overall increase in company insolvencies in Q4 2021 was driven by a rise in CVLs, which accounted for 90% of all company insolvencies. These increased by 15% from Q3 2021 and were 68% higher than during the same quarter last year, after seasonal adjustment. The number of CVLs was the highest quarterly number since the series began in 1960.

This increase in CVLs in the second half of 2021 coincided with the phasing out of measures put in place to support businesses during the coronavirus pandemic as described in the annual section above.

Compulsory liquidations

The number of compulsory liquidations in Q4 2021 was 34% higher than in the previous quarter, but similar to the same quarter of 2020.

Administrations

The number of administrations in Q4 2021 was 62% higher than in the previous quarter, but 21% lower than the number in the same quarter of the 2020, after seasonal adjustment.

CVAs

The number of CVAs was 65% higher in Q4 2021 than in Q3 2021, but 59% lower than in Q4 2020.

Receivership appointments

There were no receiverships in Q4 2021, the previous quarter, or in the same quarter last year.

Moratoriums and restructuring plans

Between 26 June 2020 and 31 December 2021, in England and Wales, 15 moratoriums were obtained and 10 companies had a restructuring plan registered at Companies House. These two new procedures were created by the Corporate Insolvency and Governance Act 2020.

3.3 Annual liquidation rates per 10,000 active companies

In 2021, the company liquidation rate was 32.9 per 10,000 active companies in England and Wales (Table 3 and Figure 2 below). This corresponds to 1 in 304 companies entering liquidation in the 12 months ending Q4 2021.

The insolvency rate gives an indication of the probability of a company entering liquidation in the previous four quarters. As the rates are calculated as a proportion of the total number of active companies, they are more comparable over longer time periods than the absolute numbers.

The rates presented for each quarter reflect a four-quarter rolling rate per 10,000 active companies. Therefore, the Q3 2021 rates, for example, were calculated using data covering the period from Q4 2020 to Q3 2021 (1 October 2020 to 30 September 2021).

Table 3: The rate of company liquidations in 2021 was higher than in both 2020 and the 12-month period ending Q3 2021, as a result of an increased rate of CVLs.

England and Wales, four-quarter rolling rate per 10,000 active companies

	Total liquidations	Compulsory Liquidations	CVLs	CVL following Administration
2020Q4	29.4	3.5	24.5	1.5
2021Q1	25.5	1.9	22	1.5
2021Q2	26.1	1.7	23	1.5
2021Q3	29.3	1.2	26.7	1.4
2021Q4	32.9	1.1	30.6	1.2
Change in rate per 10,000 active companies, 12 months ending latest quarter (Q4 2021) compared with:
vs 2021Q3	3.6	0.0	3.9	-0.3
vs 2020Q4	3.5	-2.3	6.1	-0.3

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

Change in rate numbers may not equal the difference in rates presented due to rounding.

The long-term series back to Q1 1984 (where applicable) can be found in the CSV file that accompanies this release.

The overall rate of company insolvency for 2021 was higher than both the rate of company insolvency for 2020 and the rate for the 12 months ending Q3 2021.

In 2021:

• The rate of compulsory liquidations was 2.3 per 10,000 companies lower than in 2020, but similar to the 12 months ending Q3 2021;
• the rate of CVLs was 6.1 per 10,000 higher than in 2020, and 3.9 higher than in the 12 months to Q3 2021; and
• the rate of CVLs after administration was 0.3 per 10,000 companies lower than in both 2020 and the 12 months ending Q3 2021. Note that CVLs following administration are not new insolvency procedures, and are counted as administrations in Tables 1 and 2.

Figure 2: The liquidation rate in 2021 increased from the previous quarter, but remained below pre-pandemic levels.

England and Wales, four-quarter rolling rate per 10,000 active companies, Q4 2011 to Q4 2021

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

Historically, changes in company liquidation rates have been related to economic conditions. In periods of economic growth, liquidation rates tend to decrease. During and shortly after recessions, the liquidation rate tends to increase. In the past 40 years, the liquidation rate peaked in the 12 months ending March 1993, shortly after the end of the early 1990s recession. The next sustained increase in the rate coincided with the 2008-09 recession, with a peak in the 12 months ending December 2009 (see Figure 3).

The recent recession coinciding with the coronavirus pandemic did not follow this pattern, with the liquidation rate decreasing during 2020. This is likely in part as a result of the Government measures taken to support business. For example, the Corporate Insolvency and Governance Act 2020 suspended the serving of statutory demands between 1 March 2020 and 30 September 2021 and restricted winding-up petitions where unpaid debt was due to Covid-19. It also suspended rules relating to personal liability for directors for wrongful trading between 1 March 2020 and 30 June 2021. More detail can be found in the House of Commons Libary briefing. The Government also contributed to wages of furloughed employees between 1 March 2020 and 30 September 2021 through the Coronavirus Job Retention Scheme. The phasing out of these measures in the second half of 2021 coincided with an increase in the liquidation rate.

Figure 3: Recessions are generally associated with increased liquidation rates. However, during the coronavirus-related recession the rate decreased.

England and Wales, four-quarter rolling rate per 10,000 active companies, Q4 1984 to Q4 2021

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

3.4 Company insolvencies by industry (SIC 2007)

The following analysis excludes insolvencies where the company industry was unknown, non-trading or dormant (186 in 2021, compared to 208 in 2020). In some cases, confirmation of industry sector for compulsory liquidations may be delayed by one quarter or more and therefore overall insolvencies by industry are provisional.

Note that the numbers of insolvencies in these categories are likely to be partly driven by the number of active companies in a given category and do not reflect the relative likelihood of companies in each industry entering insolvency.

The three industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in 2021 were:

• Construction (2,579 insolvencies, 19% of cases with industry captured);
• Wholesale and retail trade and repair of vehicles (1,722 insolvencies, 12% of cases with industry captured);
• Accommodation and food services activities (1,673 insolvencies, 12% of cases with industry captured); and

The construction industry tends to have the highest quarterly number of insolvencies of any industrial grouping.

Increases in insolvencies were seen across most industries in 2021 compared to 2020, as shown in Figure 3. The only large sector to show a decrease in insolvency numbers was the Manufacturing sector (down 13%). Several sectors showed increases above the overall annual increase of 11%, including Professional, scientific and technical activities (up 35%) and Construction (up 25%). Electricity, gas, steam and air conditioning supply sector insolvencies increased by 75%, although this sector represented less than 1% of all company insolvencies.

The full details can be found in the Company Insolvencies by Industry tables

Figure 4: Most industries saw more insolvencies in 2021 than in 2020.

England and Wales, 2020 to 2021, not seasonally adjusted

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

4. Company insolvency in Scotland

Legislation relating to company insolvency in Scotland is devolved. The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers company insolvency in Scotland. The figures below are not seasonally adjusted.

In Q4 2021, there were 263 total company insolvencies in Scotland, 80% higher than during the same quarter of 2020. These comprised 48 compulsory liquidations, 203 CVLs and 12 administrations. There were no CVAs or receivership appointments. These numbers are shown in Figure 5.

Figure 5: Company insolvencies were higher in Q4 2021 than in the same quarter last year, and were similar to pre-pandemic levels

Scotland, Q4 2011 to Q4 2021, not seasonally adjusted

Source: Companies House

Historically, the numbers of company insolvencies in Scotland have been driven by compulsory liquidations. However, in each quarter since the start of the coronavirus pandemic, there have been fewer compulsory liquidations than CVLs.

Between 26 June 2020 and 31 December 2021, in Scotland, no moratoriums were obtained and two companies had a restructuring plan registered at Companies House. These two new procedures were created by the Corporate Insolvency and Governance Act 2020.

The total liquidation rate in Scotland in 2021 was 32.8 per 10,000 active companies, as shown in Figure 6. This was up by 5.7 from 2020.

Figure 6: The overall liquidation rate in Scotland was higher in 2021 than 2020.

Scotland, Q4 2011 to Q4 2021, not seasonally adjusted

Source: Companies House

5. Company insolvency in Northern Ireland

Company insolvency in Northern Ireland is governed by separate, but broadly similar, legislation to England and Wales, and so figures are presented separately.

There were 32 company insolvencies in Northern Ireland in Q4 2021, an increase of 33% on the same quarter of 2020. This comprised 18 CVLs, three administrations, 10 compulsory liquidations and one CVA. There were no administrative receiverships. These numbers can be seen in Figure 7.

Figure 7: Company insolvencies in Northern Ireland remained lower than pre-pandemic levels in Q4 2020.

Northern Ireland, Q4 2011 to Q4 2021, not seasonally adjusted

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

The total liquidation rate in 2021 in Northern Ireland was 14.1 per 10,000 active companies, as shown in Figure 8. This was a decrease of 6.1 (from a rate of 20.1 per 10,000 active companies) from 2020.

Figure 8: Liquidation rates in Northern Ireland were lower in 2021 than in 2020

Northern Ireland, Q4 2011 to Q4 2021, not seasonally adjusted

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

6. Data and Methodology

6.1 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, and compulsory liquidation data for Northern Ireland which were sourced from the Department for the Economy.

Companies House data were used to determine all active companies registered in each quarter in the previous twelve months, to calculate insolvency rates for England and Wales. These data are separately published by Companies House on the Gov.uk website.

More information on the administrative systems used to compile insolvency statistics can be found in the Statement of Administrative Sources.

6.2 Methodology and data quality

Further details on the methodology and quality information for these statistics can be found in the accompanying Quarterly Statistics Methodology and Quality document.

The main quality and coverage issues to note:

1. This statistical release presents the numbers of creditors’ voluntary liquidations (CVLs), administrations, company voluntary arrangements (CVAs) and receivership appointments based on their registration date at Companies House, and therefore reflect company insolvency registrations rather than insolvency procedure start dates.
2. Compulsory liquidation numbers are marked provisional as any cases that are later annulled or rescinded will be removed from future releases to avoid duplication should the company enter insolvency again in the future.
3. These statistics may not equal the sum of monthly statistics, published separately, which cover the period January 2019 to December 2021, due to differing methodologies including seasonal adjustment.
4. These statistics may not align with information published separately by Companies House, or with data extracted from the Gazette. Further information on why numbers may not align can be found in the accompanying Quarterly Statistics Methodology and Quality document.

Seasonal adjustment

To aid comparison between quarters, underlying data for CVLs and administrations in England and Wales were adjusted where there was evidence of seasonality to minimise the effect of the time of year and provide a true picture of the trends in insolvency. There was no evidence of seasonality in the underlying data on compulsory liquidations, CVAs and receiverships, therefore these data have not been adjusted. Full details on the models used to adjust the data can be found in the Seasonal Adjustment Review published in April 2020.

The data series for Scotland and Northern Ireland do not demonstrate consistent seasonality and only the unadjusted series have been presented, as agreed with the relevant officials in the devolved administrations.

The seasonal adjustment models for England and Wales are typically reviewed on an annual basis, in accordance with the Insolvency Service Official Statistics Revisions Policy. However, the trend in company insolvencies during the 2020 reflected a very different pattern to that seen in previous years; largely a result of the coronavirus (COVID-19) pandemic. Therefore the 2021 review was not conducted and data for 2021 continues to be seasonally adjusted using the 2020 model.

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 active companies registered with Companies House in that location in the same twelve-month period.

6.3 Revisions

These statistics are subject to scheduled revisions, as set out in the published Revisions Policy. Other revisions tend to be made as a result of data being entered onto administrative systems after the cut-off date for data being extracted to produce the statistics. Any revisions to these statistics will be marked with an ‘[r]’ in the relevant table.

Further details on routine and non-routine revisions can be found in the accompanying Quarterly Statistics Methodology and Quality document.

7. Glossary

Key Terms used within this statistical bulletin

Term	Definition
Administration	The objective of administration is the rescue of the company as a going concern, or if this is not possible then to obtain a better result 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.
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, therefore leading to creditors’ voluntary liquidation (CVL) of large numbers of these companies. These additional CVLs are referred to as “bulk insolvencies”.
Company voluntary arrangement (CVA)	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 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 is not included because it does not involve insolvency.
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. It also prevents legal action being taken against a company without permission from the court.
Partnership Winding-up Orders	This is similar to the liquidation of a company. When the partners have decided that the partnership has no viable future or purpose then a decision may be made to cease trading and wind up the partnership. There are two basic ways that the partnership can be wound up: the creditors petition and a partner’s petition.
Receivership Appointments	Administrative receivership is where a creditor with a floating charge (often a bank) appoints a licensed insolvency practitioner to recover the money it is owed. Before 2000 receivership appointments also included other, non-insolvency, procedures, for example under the Law of Property Act 1925. The use of this procedure is restricted to certain types of company, 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