Insolvency technical update: March 2025

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

Changes to statutory employment rights  

The National Minimum Wage and National Living Wage rates increase on 1 April 2025. The new rates payable are as follows: 

21 and over	18 to 20	Under 18	Apprentice
£12.21	£10.00	£7.55	£7.55

The Employment Rights (Increase of Limits) Order 2025 increases the maximum weekly rates for redundancy and other employment entitlements will rise from £700 to £719 in England & Wales and Scotland as part of broader increases under employment legislation.   

The equivalent cap in Northern Ireland will increase from £729 to £749 with effect from 6 April 2025 as part of change to multiple employment rights rates contained within The Employment Rights (Increase of Limits) Order (Northern Ireland) 2025. 

HMRC Insolvency Bulletins 

HMRC have issued two Insolvency Practitioner Bulletins (IPB).  

IPB 1 (2025) advises that HMRC have changed the way they issue VAT repayments to insolvency practitioners from 10 March 2025. The VAT 7 form (used to cancel a VAT registration) has been updated to include a section to input bank details to take account of this change. IPs and their staff must ensure they use the most recent version of the VAT 7 when cancelling a VAT registration.   

IPB 2 (2025) advises that from 11 April 2025, all existing HMRC Enforcement and Insolvency Services (EIS) phone numbers will be replaced. From that date the number for all EIS enquiries will be 0300 322 9209 with the line will be open Monday to Friday 8am to 5pm.  

Moveable Transactions (Scotland) Act 2023 

The above Act will come into effect on 1 April 2025. From then parties will be able to grant the new statutory pledge security over their moveable assets and register statutory pledges and assignations in the new Register of Statutory Pledges/ Register of Assignations. 

The Moveable Transactions (Scotland) Act 2023 Amendment Regulations 2025, made on 27 March 2025, have amended the Act by omitting sections 4(6)(a)(v) and 50(3)(a)(v), removing an assignor or provider’s application for an approved debt payment programme under section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002 from those provisions. As a result, debt arrangement schemes are no longer a personal insolvency trigger that restricts an assignation or statutory pledge over post-insolvency property. 

IPs should ensure that checklists and other documentation are updated to check the relevant registers on appointment and to ensure that relevant assets subject to security are identified and creditors dealt with appropriately as a secured creditor. 

Companies House changes 

The service to register as a Companies House Authorised Corporate Service Provider (ACSP) has opened.  

More information is available in our articles on New identification requirements coming from Companies House and What you need to know about becoming an Authorised Corporate Service Provider. 

Special administration of water companies 

The Water (Special Measures) Act 2025 has received Royal Assent and amendments to section 25 of the Water Industry Act 1991(power to make special administration order on winding-up petition) come into effect on 24 April 2025.  

Corporation Tax for companies in administration – what tax rate to use? 

There have been some queries recently on the application of the small profits rate and marginal rate of corporation tax for companies entering administration. Our article explains the special rules affecting the administration and payment of Corporation Tax for companies in administration. 

Postmasters redress (Horizon IT) 

A progress update on redress for postmasters subject to bankruptcy orders has been issued by the Insolvency Service. 

Update to BASYS trustee user guide 

The Accountant in Bankruptcy has updated section 4 of the BASYS trustee user guide (available in the “Help” section of BASYS) for submitting a Debtor Contribution Order (DCO) proposal. This update includes details on submitting a cure defect application and the submission timescales. 

Common Financial Statement (CFS) trigger figures update 

The trigger figures for the CFS, used for statutory debt solutions in Scotland, will be updated on 1 April 2025. The Accountant in Bankruptcy have advised that they’ll adopt a flexible approach for a period of one month after 1 April 2025 as a transitional arrangement for advisers updating their systems and processes.  

Standard Financial Statement (SFS) Spending Guidelines for 2025/26 

The SFS spending guidelines for 2025/26 will change on Monday 7th April. The updated SFS Excel Tool will also be available on that date. 

Insolvency Service Case Management System update 

The Insolvency Service have advised that the introduction of their new case management system, INSSight, has been delayed further and that it is expected to be introduced in late May 2025. 

Changes to our technical helpdesk 

As part of our drive to improve service delivery and member support experience, we have changed the internal system we are using to respond to technical queries. This change will allow us to be more responsive and provide a consistent experience for technical queries as well as providing us with a greater oversight of queries raised. Members and those within member firms can raise their query with us by following the 'Contact our technical helpdesk' link on our practice and regulation support page. 

AML Regulatory Actions Guidance 

New guidance has been issued setting out how we’ll apply regulatory penalties where non-compliance with AML responsibilities is found. The new guidance will be applied by the relevant ICAS committees from 7 April 2025. Supervised firms are encouraged to review the eight categories of non-compliance in the guidance and take immediate action if there are any areas whether further work is required to achieve compliance. Further information on the guidance and its background is available in this article. 

Legal update 

McKinlay v Avellierie Ltd & Anr [2025] SAC (Civ) 6 The Sheriff Appeal Court has recently considered the question of whether the assignation of a loan also functioned to assign a personal guarantee which related to that loan. (via BBM Solicitors)