Insolvency technical update: April 2026

Read our latest insolvency technical update – your round-up of the recent developments in insolvency.

Insolvency practitioner bulletin 1 (2026) — Economic Crime Levy insolvency process

HMRC has issued a bulletin setting out how insolvency practitioners should handle the Economic Crime Levy (ECL) as part of an insolvency. This includes details of a new form to submit an ECL return and cancel a company’s ECL registration.

Common Financial Tool guidance

The Care Leaver Payment, introduced by the Scottish government on 1 April 2026, is excluded from assessment as part of income for the purposes of a contribution order. Appendix A of the Notes for Guidance - Common Financial Tool has been updated to reflect this.

Also from 1 April, evidence to support utility spend – gas, electricity and others (coal, oil, Calor gas, solid fuel etc) – is only required where the spend is more than £137 per month. This is reduced from the previous £146.50 per month to reflect changes in the Ofgem energy price cap effective between 1 April and 30 June 2026. Section 6.8 of the Notes for Guidance - Common Financial Tool has been updated to reflect this.

Standard Financial Statement (SFS) 2026/27 update

The SFS spending guidelines for 2026/27 came into effect on 6 April. An updated SFS Excel tool is also available from that date. The new guidelines, along with an explanation of what’s changed, are available to SFS membership organisations on the SFS website.

The Common Financial Statement continues to apply as the Common Financial Tool for the purposes of statutory debt solutions in Scotland.

Statutory limits for employment right payments

From 6 April, the statutory limit for employment right payments such as redundancy pay, unpaid wages, holiday pay and notice pay increased. In England, Wales and Scotland, the limits increased from £719 to £751 per week (The Employment Rights (Increase of Limits) Order 2026), while in Northern Ireland, the rates changed from £749 to £783 per week (The Employment Rights (Increase of Limits) Order (Northern Ireland) 2026). Other limits on Employment Tribunal awards also changed.

National minimum wage

The hourly rate for the minimum wage increased from 1 April 2026. The new rates can be viewed on GOV.UK.

INSSight

The Insolvency Service has provided an update on the rollout of their new case management system INSSight. It includes an update on several known issues and plans to resolve these.

Subcontracting

A new helpsheet has been added to the ICAS General Practice Manual providing advice and information on the ethical, legal and practical implications of acting as or engaging a subcontractor to deliver practice work and services. Although not specific to insolvency work, the helpsheet provides key foundational considerations for this type of arrangement.

ICAS Code of Ethics

A revised ICAS Code of Ethics has been published, effective from 1 July 2026. The updated Code brings in provisions relating to tax planning and related services and with new application material in relation to professional behaviour. Read more about the updated Code of Ethics. 

There are no changes to the Code of Ethics: Part 10 - Insolvency Practitioners. This already includes equivalent application wording in relation to professional behaviour at paragraph 2105.1 A2. This is being introduced into the main code at 115.1 A2. Additional Guidance to the ICAS Code of Ethics: Fundamental ethics principal of professional behaviour – paragraph 115.1 A2 has been produced to accompany the revised ICAS Code of Ethics, and is equally applicable to paragraph 2105.1 A2.

Legal updates

Jenkins‑Yates [2026] UKFTT 480 (TC) The First-Tier Tax Tribunal decision clearly explains when HMRC can make a company director personally responsible for unpaid tax by imposing a personal liability notice (PLN) after a company becomes insolvent.