-
More than 1,000 directors disqualified following Insolvency Service investigations.
-
Of these, 736 were banned for Covid loan abuse.
-
The report also highlights the average length of a ban was eight years.
Latest figures from the Insolvency Service show the agency banned more than 1,000 directors in 2024-25, of which 736 were for Covid loan abuse.
The Insolvency Service enforcement outcomes report for 2024-25 was published on 14 April 2025.
The report shows that of the 1,036 directors who were disqualified, 736 were for Covid loan abuse and the average length of a ban was eight years.
The report also shows that there have been 131 bankruptcy restriction orders put in place, 87 of which were related to the abuse of Covid loans.
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, said
Disqualifications for more than one thousand directors demonstrates the impact our investigative work is having.
Whether it be Covid loan abuse or directors breaching disqualification restrictions, we are consistently tackling misconduct and bringing those responsible to account.
The end result is a reminder to all businesses to operate appropriately, within the law, and helping to protect the public from rogue business and their directors.
Directors can be banned from being the director of a company for actions including
-
failing to maintain adequate accounting records.
-
not paying tax or VAT that is owed to HMRC
-
securing a Covid Bounce Back loan they were not entitled to
A director can be disqualified for up to 15 years. During this time, they cannot be a director of a company in the UK, or an overseas company which has connections with the UK and they cannot be involved in forming, promoting or running a company.
Breaking the terms of a disqualification can result in a fine or a prison sentence of up to two years.
Bounce Back loans were introduced in 2020 to help support businesses affected by Covid-19, on the condition that they were used for the economic benefit of the business and not for personal purposes.
A bankruptcy already places restrictions on what a person can do for a set period. If a person is dishonest or is to blame for their debts, the court can make a bankruptcy restrictions order (BRO) which extends this period of restrictions for between two and 15 years, and subject to further restrictions.
Insolvency Service enforcement outcomes 2024-25 can be found here Insolvency Service enforcement outcomes management information – GOV.UK
