Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Acknowledged
HMRC, Companies House, and Insolvency Service commit to increasing collaboration to tackle phoenixism.
Recommendation
At Autumn Budget 2024, the government announced that it was increasing collaboration between HMRC, Companies House and the Insolvency Service to tackle phoenixism.40 The Insolvency Service told us that, since the publication of the National Audit Office’s report, it had started an action group alongside Companies House and HMRC to look at phoenixism.41 All three organisations said that they were committed to increasing collaboration between them to tackle phoenixism and HMRC told us the organisations would be developing a concrete plan over the remainder of the financial year. The organisations cited a range of benefits of increased collaboration including exploiting data sharing to aid early intervention and maximise opportunities to recover taxes due before insolvency.42
Government Response Summary
HMRC will develop a concrete plan to increase collaboration between HMRC, Companies House and the Insolvency Service to tackle phoenixism and will write to the Committee within 6 months to set out its plan.
Government Response
Acknowledged
HM Government
Acknowledged
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 6.2 The government announced at Autumn Budget 2024 the commitment of HMRC, Companies House and Insolvency Service to increase their collaboration to tackle rogue directors and phoenixism. This includes developing a shared definition of phoenixism. The Exchequer Secretary to the Treasury, provided an update on progress in a speech on 11 March 2025. Exchequer Secretary to the Treasury: 20 years of HMRC - reflections and looking ahead - GOV.UK. 6.3 HMRC, Companies House and Insolvency Service have agreed a joint implementation plan for measures to tackle rogue directors who abuse the insolvency regime to evade tax by closing down vulnerabilities in company registrations and dissolutions; increasing the compliance impact achieved by HMRC; and increasing the flow of investigations into unfit directors by the Insolvency Service. 6.4 HMRC will continue to develop its estimate of tax losses due to phoenixism and the measures of the deterrent effect of the response. 6.5 The government will write to the Committee within 6 months to set out its plan.