A HMRC crackdown on tax has sparked a rise in compulsory liquidations. HMRC is cracking down on unpaid taxes by struggling directors, with fresh data showing compulsory liquidations spiked by 11 per cent in the year to July 2025.

Data from the Labour Party government shows 2,081 company insolvencies in July, and 339 companies were forced to close down, which was 26 per cent higher than the monthly average seen across 2024.

“Our members are reporting that HMRC is taking a more assertive stance towards enforcement, with greater appetite to recover unpaid taxes through the courts,” R3 president Tom Russell said.

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HMRC is taking a more "direct approach," tax experts say. Tom said: “Directors are feeling the i

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