Director disqualification: the common grounds
Since February 2022 directors of companies that have been dissolved can be disqualified, under the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021, passed in December 2021. A voluntary strike off is no longer a way to avoid scrutiny of a director's conduct before the company failed. Insolvency Service enforcement outcomes; Companies House register
Data as of: 2025/26 full year and 2026/27 to August, Insolvency Service tables updated 18 September 2026
| Common reason | What it involves |
|---|---|
| Bounce Back Loan misuse | Taking or spending loan money improperly |
| Unfair treatment of creditors | Preferring some creditors, including connected parties |
| Failure to keep or deliver records | Inadequate accounting records |
| Unpaid taxes | Trading to the detriment of HMRC |
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Disqualification turns on how a director behaved, not simply on the company failing. What usually matters is whether you kept trading when you knew the company could not pay its debts, and whether creditors were treated fairly, so a record of the decisions you make now is the simplest protection.
- Wrongful trading explained
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- Director disqualification
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General information, not advice about your company.
Methodology and source
This page combines Insolvency Service enforcement outcomes with the Companies House disqualified directors register to set out the most common grounds for director disqualification. In 2025/26 there were 1,158 director disqualifications in Great Britain; of the 1,044 made under section 6 (unfitness after insolvency), 773 related to COVID-19 financial support scheme abuse allegations. In 2026/27 to the end of August there were 466, with 258 of 415 section 6 cases relating to COVID-19 support scheme abuse (2025/26 tables; 2026/27 tables). The Insolvency Service does not separate Bounce Back Loans from the other COVID-19 schemes in these figures. See the enforcement outcomes (linked above) for the latest published numbers. The 2021 reforms allow investigation of directors of dissolved companies, which is why a strike off is not a way to avoid scrutiny. Acting honestly and taking advice early is the best protection against personal liability.
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