More directors banned for Covid support scheme fraud

The Insolvency Service is now banning on average 35 directors a month for Covid support scheme abuse.

In the period 1 April to 31 December 2022 statistics from the Insolvency Service show that 312 company directors were banned from running businesses for abuse of Covid support schemes compared to 141 in the whole 2021-22.

Over the same period the average length of director bans has also increased by 22% from 5.9 years to 7.2 years. Directors disqualified in December 2022 received bans of eight years on average.

The increase in the number of director disqualifications combined with longer bans suggests that the Insolvency Service is accelerating its enforcement activity in relation to Covid fraud.

Michael Pallott partner and head of contentious insolvency at Mazars said: ‘The harsher penalties for directors seen over recent months suggest that the Insolvency Service...