The total number of UK company insolvencies have dropped by 29% in the first quarter of 2017 due to a surge of personal service companies applying for a creditors’ voluntary liquidation.
This figure has come in light of several amendments to claimable expense regulations; however UK business insolvencies have increased by 5%.
During the last quarter of 2016, just fewer than 2,000 personal service companies used a voluntary liquidation following changes to claimable expense regulations with a total of 16,522 UK companies entering into insolvency throughout 2016. The total number of company insolvencies has decreased by 27% with 3,991 companies entering into insolvency in the first quarter of 2017 compared to 5,578 during the same period in 2016.
The number of companies entering into voluntary liquidation has risen by 5% compared with relevant figures for the final quarter of last year, and by 5% in quarter one. Excluding the end of 2016, voluntary liquidation were the highest since Q4 2013.