Insolvency Service names phoenixing as top target in new strategy

The agency is working with HM Revenue & Customs and Companies House, using AI to link evidence across bodies, and will pursue prison terms for directors acting unlawfully, targeting live businesses rather than waiting for insolvency. The government has allocated £25m over five years for a 50-strong investigation team.

Peter Etherington of Ilkley was jailed for 18-and-a-half months and disqualified for ten years over repeated phoenixing at his publishing business. Beach is also reviewing insolvency practitioner regulation and plans a new rescue tool for small businesses.