UK Company Insolvency Statistics for April 2026

April’s insolvency figures show that pressure on UK businesses is still high, with company insolvencies rising for the second month in a row. The Insolvency Service recorded 2,085 company insolvencies in England and Wales, 2% higher than March 2026 and 3% higher than April 2025. Although the overall numbers aren’t dramatically worse than a year ago, the below breakdown shows increase in compulsory liquidations, meaning creditors are losing patience waiting for directors to act.

Types and Amounts of Closures

Creditors’ Voluntary Liquidations (CVLs)

1,510 cases – 72% of all insolvencies

CVLs remain the most common type of insolvency and the numbers are broadly in line with recent months.

More directors are choosing to close their businesses before creditors take action against them. While that’s never an easy decision, acting early usually gives directors more control over the outcome and can help avoid extra pressure later on.

Although CVLs made up a slightly smaller share of insolvencies compared to earlier in the year, this is mainly because other types of insolvency have increased rather than fewer directors taking action.

Compulsory Liquidations

371 cases – up 19% from March 2026

The amount of compulsory liquidations was the biggest change in April’s figures. They are now at their highest level since February 2025, with The Insolvency Service reporting them at 24% above the 12-month average. HMRC and other creditors are actively pursuing outstanding debts through the courts. For directors, this is a reminder that avoiding the problem rarely makes things better. The earlier advice is taken, the more options are usually available.

Administrations

183 cases – down 21% from March but 78% higher than April 2025

The March and April figures were both affected by a large group of connected Real Estate companies entering administration across these two months, around 200 in total. Even with that taken into account, administration numbers are still significantly higher than this time last year, which suggests more directors are looking for professional help before it is too late.

Company Voluntary Arrangements (CVAs)

20 cases – unchanged from March 2026

CVAs are still at a low level. While they can help some businesses deal with debt and continue trading, they are often expensive and complicated to put in place. Because of that, many directors end up looking at other options instead.

Sector Highlights

The sectors with the highest number of insolvencies in the 12 months to March 2026 were:

• Construction – 3,827 cases (16% of total)
• Wholesale and retail trade; repair of motor vehicles – 3,642 cases (16%)
• Accommodation and food service activities – 3,295 cases (14%)
• Administrative and support service activities – 2,374 cases (10%)
• Professional, scientific and technical activities – 2,002 cases (9%)
• Manufacturing – 1,876 cases (8%)
  

Most sectors saw slightly fewer insolvencies than the previous 12 months, which is a positive sign. Construction saw the biggest improvement, down 7%, but the Professional and Scientific sector saw a 4% increase. For accountants, advisers and business owners working in these sectors, it is worth keeping a close eye on cashflow, unpaid invoices and creditors that are struggling to pay. Spotting the warning signs early can make a huge difference to the options available.

Our Insolvency Practitioner’s View

Richard Hunt, Insolvency Practitioner at Exigen Group, says:

“April’s figures show that business pressure is still very real, even if overall insolvency numbers haven’t changed dramatically compared to last year. The biggest concern is the rise in compulsory liquidations, as it shows creditors are becoming far more aggressive when debts are left unresolved.

We’re still seeing many directors take advice early and look at their options before things reach crisis point, which is encouraging. The sooner businesses ask for help, the more chance there is of finding a solution and avoiding unnecessary pressure.”

If your clients are struggling with cashflow, falling behind with HMRC, or unsure whether their business can continue, getting advice early can make a significant difference.

At Exigen Group, we can help directors understand their position, talk through the options available, and where possible look at ways to protect the business. If closure is the right route, we can make sure the process is handled properly and with the right support throughout.