The level of losses to creditors has soared to £119.6m during the April to June period in 2014, while director disqualifications have also increased, according to research from Zolfo Cooper.
The Q1 2014-2015 Disqualification Tracker shows there was a 386% increase between Q4 2013-2014 (January to March 2014) and Q1 2014 (April to June 2014) – a jump from £24.6m to £119.6m.
During the period, one disqualified director was responsible for causing losses to HMRC of £55m, although the total loss to creditors minus this figure would stand at £64.6m – still a 162% increase quarter-on-quarter.
HMRC was by far the greatest loser when it comes to creditor losses (£96.4m), followed by investors (£8.3m) and trade creditors (£7.5m) respectively.
The research also found there were a total of 237 directors disqualified during Q1 2014-2015, up from 142 in the previous quarter.
The Business and Consumer Services sector saw the most “company failures through disqualifications” during the quarter (65), while disqualifications in the Retail and Consumer Products sector jumped threefold to 36.
Figures from the Insolvency Service in June found there were 1,208 disqualified directors during 2013/2014, up from 969 in 2012/2013 – an increase of 25%.
The findings come as business secretary Vince Cable continues to call for tougher laws to crack down on ‘dodgy directors’.
In April, Cable announced a series of new proposals, set to be tabled in the Parliamentary session ending in spring 2015, include the ability to disqualify people convicted of commercial crimes abroad from operating UK firms.