Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

by February 18, 2025
February 18, 2025
Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

The number of company insolvencies rose sharply at the start of the year, reaching a level not seen since the financial crisis, according to the latest figures from the Insolvency Service.

More than 1,900 businesses went under in January—10.7 per cent more than a year earlier—meaning nearly 500 firms a week were forced to fold.

Aside from 2009, when the economy reeled from the global credit crunch, last month’s total was the highest recorded for any January since official data collection began in 2000.

Tim Cooper, president of insolvency and restructuring trade body R3, highlighted that many of these cases were voluntary liquidations, suggesting owners were choosing to wind up solvent businesses. “Years of challenging trading conditions are taking a toll,” he said, “and with an increase in the national minimum wage and employers’ National Insurance contributions on the horizon, it appears some directors are stepping away before costs become unmanageable.”

From April, firms must grapple with Chancellor Rachel Reeves’s Budget measures, which include a £25 billion tax raid on employers through higher National Insurance. That same month, they also face a 6.7 per cent rise in the National Living Wage—exceeding most private-sector expectations.

Some analysts say the spectre of additional legislation—such as Deputy Prime Minister Angela Rayner’s Employment Rights Bill, set to cost businesses an estimated £4.5 billion annually—may be accelerating decisions to close up shop. Many of these burdens come on top of persistently high energy bills, fallout from Russia’s invasion of Ukraine and interest rates which, although trimmed recently, remain far higher than their pre-pandemic levels.

“Companies have faced climbing expenses for a prolonged period,” Mr Cooper added, “and consumer confidence has been dented. Meanwhile, creditors have become less tolerant in chasing outstanding debts, including HMRC, which has reverted to a more stringent stance.”

The figures show a fresh blow for businesses that had already endured a subdued Christmas trading season. Retailers and hospitality venues have struggled with low consumer spending, while VAT and PAYE arrears are being pursued more aggressively. Lawyer Gavin Kramer from Collyer Bristow also warned: “Firms continue to struggle, and there are few clear signs of economic growth.”

Before January’s jump, overall insolvencies had been in decline since last June—but these numbers confirm that thousands of directors have now decided the best option is to close before spring’s raft of cost increases bite.

A Treasury spokesman declined to comment on the data.

Read more:
Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

0
FacebookTwitterGoogle +Pinterest
previous post
Russia, Ukraine take ‘significant first step toward peace’ after Rubio-led negotiations, White House insists
next post
Elon Musk: Federal Agencies Are Like Weeds

You may also like

Jeff Bezos could save $600m in taxes after...

February 14, 2024

Cash House Buyers: The Best Solution for Distressed...

June 19, 2024

Sadiq Khan Unveils Plan to Create 150,000 High-Quality...

April 3, 2024

The Best Way to Launch Your New Brokerage...

August 9, 2023

Entrepreneurs turn to pawnbrokers as banks tighten business...

August 21, 2024

SME’s embrace open banking payment technology

April 3, 2023

British businesses ‘missing out on AI revolution’ finds...

January 1, 2024

10 Influencer Marketing Tactics to Amplify Your Brand’s...

November 22, 2022

Colleagues acquire one of the biggest dental practices...

July 4, 2023

Exploring the World of Custom Hats: A Guide...

January 3, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved