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Contractor Tax Accountants

UK Contractor Insolvency Index

UK contractor-sector company insolvencies rose 60.5% between 2016 and 2025

A sourced, monthly read on company insolvencies across the two SIC sections contractors sit in, drawn from Insolvency Service public records, with a narrower figure isolating the specific IT, consultancy and engineering divisions this site tracks. Updated Jun 2026.

3,547
Section J+M company insolvencies in the trailing 12 months
59.0%
of those insolvencies sit in the captured contractor divisions (62/70/71)
60.5%
more insolvencies in 2025 than in 2016
374
insolvencies in Nov 2024, the highest month on record

Key findings

  • Combined Section J and M insolvencies rose 60.5% from 2,304 in 2016 to 3,698 in 2025.
  • In the trailing 12 months to Jun 2026, 3,547 companies entered insolvency across Section J (1,481) and Section M (2,066) combined.
  • Of that total, 2,092 (59.0%) sat in the specific divisions this site tracks, computer programming and IT consultancy (division 62), management consultancy (division 70) and architectural and engineering activities (division 71). The captured share rose 74.4% between 2016 and 2025.
  • Creditors Voluntary Liquidation (CVL) is the dominant procedure across both sections, as it is economy-wide: directors choose voluntary wind-up far more often than creditors force a compulsory liquidation through the courts.
  • In Jun 2026, 237 contractor-sector companies entered insolvency, of which 190 were CVLs, 23 compulsory liquidations, and 14 administrations.

Source: Insolvency Service, Company Insolvency Statistics (record-level data), under the Open Government Licence v3.0. England, Wales and Scotland. Figures may be cited with attribution to Contractor Tax Accountants.

Contractor-sector insolvencies by year

Each bar shows the combined total for Section J and Section M registered in that calendar year (complete years only). The rise from 2022 broadly follows the same pattern seen across UK company insolvencies economy-wide, as the pandemic-era moratorium on winding-up petitions unwound.

01,2502,5003,7505,0002016: 2,304 Section J+M insolvencies20162017: 2,208 Section J+M insolvencies20172018: 2,331 Section J+M insolvencies20182019: 2,444 Section J+M insolvencies20192020: 1,848 Section J+M insolvencies20202021: 2,468 Section J+M insolvencies20212022: 3,289 Section J+M insolvencies20222023: 3,587 Section J+M insolvencies20232024: 3,600 Section J+M insolvencies20242025: 3,698 Section J+M insolvencies2025

The monthly trend by procedure

The stacked area chart shows monthly insolvency registrations across Section J and M combined, broken down by the three main procedures: CVL, compulsory liquidation, and administration.

0125250375500Jan 16Feb 17Mar 18Apr 19May 20Jun 21Jul 22Aug 23Sep 24Oct 25Jan 2016: CVL 96, compulsory 54, administration 14Feb 2016: CVL 104, compulsory 54, administration 23Mar 2016: CVL 127, compulsory 45, administration 17Apr 2016: CVL 142, compulsory 42, administration 30May 2016: CVL 110, compulsory 26, administration 22Jun 2016: CVL 138, compulsory 37, administration 24Jul 2016: CVL 120, compulsory 37, administration 27Aug 2016: CVL 126, compulsory 21, administration 26Sep 2016: CVL 135, compulsory 43, administration 32Oct 2016: CVL 92, compulsory 60, administration 33Nov 2016: CVL 133, compulsory 63, administration 25Dec 2016: CVL 125, compulsory 39, administration 15Jan 2017: CVL 141, compulsory 67, administration 14Feb 2017: CVL 114, compulsory 46, administration 25Mar 2017: CVL 138, compulsory 38, administration 22Apr 2017: CVL 145, compulsory 34, administration 16May 2017: CVL 104, compulsory 42, administration 16Jun 2017: CVL 103, compulsory 31, administration 27Jul 2017: CVL 108, compulsory 36, administration 18Aug 2017: CVL 105, compulsory 30, administration 21Sep 2017: CVL 127, compulsory 49, administration 32Oct 2017: CVL 100, compulsory 40, administration 15Nov 2017: CVL 138, compulsory 36, administration 14Dec 2017: CVL 122, compulsory 28, administration 21Jan 2018: CVL 158, compulsory 40, administration 19Feb 2018: CVL 117, compulsory 40, administration 21Mar 2018: CVL 118, compulsory 37, administration 20Apr 2018: CVL 115, compulsory 34, administration 22May 2018: CVL 124, compulsory 38, administration 20Jun 2018: CVL 138, compulsory 47, administration 20Jul 2018: CVL 111, compulsory 39, administration 23Aug 2018: CVL 135, compulsory 46, administration 20Sep 2018: CVL 134, compulsory 38, administration 20Oct 2018: CVL 136, compulsory 72, administration 21Nov 2018: CVL 142, compulsory 42, administration 30Dec 2018: CVL 75, compulsory 37, administration 35Jan 2019: CVL 156, compulsory 68, administration 21Feb 2019: CVL 106, compulsory 54, administration 24Mar 2019: CVL 133, compulsory 35, administration 26Apr 2019: CVL 144, compulsory 47, administration 28May 2019: CVL 138, compulsory 40, administration 24Jun 2019: CVL 114, compulsory 51, administration 23Jul 2019: CVL 144, compulsory 31, administration 18Aug 2019: CVL 152, compulsory 28, administration 23Sep 2019: CVL 138, compulsory 39, administration 29Oct 2019: CVL 132, compulsory 39, administration 35Nov 2019: CVL 140, compulsory 42, administration 30Dec 2019: CVL 103, compulsory 22, administration 16Jan 2020: CVL 125, compulsory 44, administration 25Feb 2020: CVL 99, compulsory 35, administration 30Mar 2020: CVL 117, compulsory 30, administration 21Apr 2020: CVL 129, compulsory 11, administration 15May 2020: CVL 127, compulsory 5, administration 22Jun 2020: CVL 79, compulsory 12, administration 19Jul 2020: CVL 78, compulsory 25, administration 28Aug 2020: CVL 86, compulsory 13, administration 20Sep 2020: CVL 120, compulsory 4, administration 25Oct 2020: CVL 128, compulsory 9, administration 16Nov 2020: CVL 103, compulsory 9, administration 17Dec 2020: CVL 158, compulsory 7, administration 30Jan 2021: CVL 92, compulsory 7, administration 18Feb 2021: CVL 108, compulsory 5, administration 10Mar 2021: CVL 149, compulsory 14, administration 19Apr 2021: CVL 156, compulsory 6, administration 9May 2021: CVL 165, compulsory 7, administration 10Jun 2021: CVL 207, compulsory 6, administration 11Jul 2021: CVL 172, compulsory 4, administration 5Aug 2021: CVL 228, compulsory 2, administration 12Sep 2021: CVL 254, compulsory 2, administration 16Oct 2021: CVL 209, compulsory 6, administration 16Nov 2021: CVL 256, compulsory 7, administration 23Dec 2021: CVL 218, compulsory 13, administration 16Jan 2022: CVL 229, compulsory 14, administration 11Feb 2022: CVL 198, compulsory 5, administration 14Mar 2022: CVL 314, compulsory 21, administration 11Apr 2022: CVL 264, compulsory 19, administration 19May 2022: CVL 254, compulsory 23, administration 9Jun 2022: CVL 216, compulsory 22, administration 18Jul 2022: CVL 251, compulsory 18, administration 7Aug 2022: CVL 260, compulsory 26, administration 14Sep 2022: CVL 185, compulsory 32, administration 7Oct 2022: CVL 209, compulsory 35, administration 18Nov 2022: CVL 216, compulsory 49, administration 18Dec 2022: CVL 223, compulsory 32, administration 17Jan 2023: CVL 193, compulsory 37, administration 10Feb 2023: CVL 192, compulsory 17, administration 17Mar 2023: CVL 252, compulsory 58, administration 23Apr 2023: CVL 199, compulsory 30, administration 23May 2023: CVL 298, compulsory 26, administration 17Jun 2023: CVL 214, compulsory 49, administration 29Jul 2023: CVL 210, compulsory 37, administration 12Aug 2023: CVL 279, compulsory 44, administration 25Sep 2023: CVL 221, compulsory 49, administration 16Oct 2023: CVL 260, compulsory 46, administration 19Nov 2023: CVL 269, compulsory 75, administration 28Dec 2023: CVL 225, compulsory 31, administration 19Jan 2024: CVL 188, compulsory 57, administration 22Feb 2024: CVL 239, compulsory 39, administration 22Mar 2024: CVL 216, compulsory 44, administration 22Apr 2024: CVL 270, compulsory 54, administration 32May 2024: CVL 222, compulsory 29, administration 16Jun 2024: CVL 258, compulsory 44, administration 29Jul 2024: CVL 245, compulsory 50, administration 35Aug 2024: CVL 203, compulsory 45, administration 24Sep 2024: CVL 191, compulsory 43, administration 23Oct 2024: CVL 207, compulsory 37, administration 24Nov 2024: CVL 270, compulsory 64, administration 38Dec 2024: CVL 201, compulsory 43, administration 19Jan 2025: CVL 209, compulsory 54, administration 27Feb 2025: CVL 177, compulsory 58, administration 17Mar 2025: CVL 254, compulsory 44, administration 25Apr 2025: CVL 220, compulsory 68, administration 24May 2025: CVL 257, compulsory 58, administration 23Jun 2025: CVL 217, compulsory 44, administration 24Jul 2025: CVL 256, compulsory 73, administration 25Aug 2025: CVL 242, compulsory 37, administration 28Sep 2025: CVL 222, compulsory 45, administration 27Oct 2025: CVL 248, compulsory 70, administration 25Nov 2025: CVL 225, compulsory 40, administration 32Dec 2025: CVL 215, compulsory 38, administration 20Jan 2026: CVL 176, compulsory 48, administration 19Feb 2026: CVL 210, compulsory 34, administration 24Mar 2026: CVL 250, compulsory 43, administration 33Apr 2026: CVL 209, compulsory 60, administration 19May 2026: CVL 227, compulsory 46, administration 21Jun 2026: CVL 190, compulsory 23, administration 19

Breakdown by procedure

The table shows the number of Section J+M insolvencies by procedure type in 2025.

Procedure2025 count% of total
Creditors Voluntary Liquidation (CVL)2,74274.1%
Compulsory Liquidation62917.0%
Administration2366.4%
Company Voluntary Arrangement (CVA)280.8%
Administrative Receivership00.0%
Total3,698100%

How much of Section J and M is actually contracting?

Sections J and M are coarse: Section J also covers publishing, broadcasting and telecoms, and Section M also covers legal and accounting, advertising, R&D and veterinary activities, none of which are contractor-heavy. The chart splits each year's Section J+M total into the captured contractor divisions (62 IT consultancy, 70 management consultancy, 71 engineering, dark bars) and everything else in the same two sections (light bars).

01,2502,5003,7505,0002016: 1,247 in divisions 62/70/712016: 1,057 elsewhere in Section J+M20162017: 1,248 in divisions 62/70/712017: 960 elsewhere in Section J+M20172018: 1,319 in divisions 62/70/712018: 1,012 elsewhere in Section J+M20182019: 1,389 in divisions 62/70/712019: 1,055 elsewhere in Section J+M20192020: 1,091 in divisions 62/70/712020: 757 elsewhere in Section J+M20202021: 1,544 in divisions 62/70/712021: 924 elsewhere in Section J+M20212022: 1,960 in divisions 62/70/712022: 1,329 elsewhere in Section J+M20222023: 2,125 in divisions 62/70/712023: 1,462 elsewhere in Section J+M20232024: 2,138 in divisions 62/70/712024: 1,462 elsewhere in Section J+M20242025: 2,175 in divisions 62/70/712025: 1,523 elsewhere in Section J+M2025

In the trailing 12 months to Jun 2026, the captured divisions accounted for 59.0% of the combined Section J+M total, 2,092 of 3,547 insolvencies.

Methodology and sources

Data source. Counts are drawn from the Insolvency Service record-level data file, published monthly as part of the Company Insolvency Statistics release on gov.uk. Each record represents a single insolvency event registered with Companies House or the Insolvency Service, tagged with the company's SIC code and procedure type. We filter to SIC 1-digit Sections J (Information and communication) and M (Professional, scientific and technical activities), the two sections that between them cover most contractor-sector activity.

What is counted. Each figure is the number of insolvency events registered in that period, not the number of unique companies. A company that enters administration and subsequently converts to CVL appears twice: once for each procedure. This is consistent with how the Insolvency Service reports its own headline figures.

Captured divisions. The same record-level file tags every insolvency with a 2-digit SIC division as well as the procedure type, so the "captured" figures above (divisions 62, 70 and 71) use no additional source: they are the same Insolvency Service data, split one level deeper, and sit entirely within the Section J+M totals shown elsewhere on this page.

Caveats. Section-level figures are coarse: SIC Sections J and M each cover several industries beyond contracting, so a rise or fall in the section total does not necessarily track the contractor-specific captured figure exactly. Counts are not rates: an increase in insolvency numbers may partly reflect growth in the total number of active companies rather than a worsening of sector conditions. The pandemic years (2020 to 2021) are not comparable to other years because temporary legislation suppressed compulsory liquidations. CVA and receivership counts are low and should be read as indicative only.

Updated. Data through Jun 2026 (latest Insolvency Service release). Generated Jul 2026.

Download the insolvency data (CSV)

Free to cite and republish with attribution to Contractor Tax Accountants. This page is a data summary and does not constitute insolvency or tax advice on any individual situation.

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Frequently asked questions

What does the UK Contractor Insolvency Index measure?

It counts company insolvencies registered each month under two SIC Section headings that between them cover most contractor activity: Section J (Information and communication, which captures IT contracting) and Section M (Professional, scientific and technical activities, which captures management consultancy and engineering). Counts are drawn from Insolvency Service record-level data covering England, Wales and Scotland, and track five main procedures: Creditors Voluntary Liquidation (CVL), compulsory liquidation, administration, Company Voluntary Arrangement (CVA), and administrative receivership.

Why use Sections J and M rather than exact SIC codes?

The Insolvency Service's monthly record-level data identifies each insolvency by 1-digit SIC section and, separately, by 2-digit SIC division, but not down to the specific 5-digit codes this site's UK Contractor Index tracks. Sections J and M are the closest coarse match: J also includes publishing, broadcasting and telecoms firms that are not contracting businesses, and M also includes legal and accounting firms, advertising agencies and R&D labs. To narrow this, the 'captured' figures on this page isolate the 2-digit SIC divisions that overlap the Contractor Index SIC set (division 62 IT consultancy, 70 management consultancy, 71 engineering), and report what share of the wider Section J+M total those divisions actually account for.

What share of Section J and M insolvencies are actually contractor divisions?

In the trailing 12 months to Jun 2026, divisions 62, 70 and 71 accounted for 59.0% of all Section J and M insolvencies combined (2,092 of 3,547). The remainder sits in adjacent but distinct industries within the same two sections, publishing, telecoms, legal and accounting, advertising and R&D among them.

What is a Creditors Voluntary Liquidation (CVL)?

A CVL is the most common insolvency procedure for UK companies generally, contractor-sector businesses included. The company's directors resolve to wind up the business voluntarily when they conclude it cannot pay its debts, and a licensed insolvency practitioner is appointed as liquidator to realise assets and distribute proceeds to creditors. CVLs typically account for the large majority of insolvency events in this dataset, reflecting how much more often directors choose to wind up voluntarily than have a compulsory liquidation forced on them by the courts.

Where does this data come from?

All insolvency counts come from the Insolvency Service's record-level data file, published as part of the Company Insolvency Statistics statistical release on gov.uk. The Insolvency Service is the UK government agency that handles corporate and personal insolvency. Its data is published under the Open Government Licence v3.0 and covers England, Wales and Scotland. The figures are updated monthly.