Latest figures from the Insolvency Service show the agency banned more than 1,000 directors in 2024-25, of which 736 were for Covid loan abuse.
The report shows that of the 1,036 directors who were disqualified, 736 were for Covid loan abuse and the average length of a ban was eight years. The report also shows that there have been 131 bankruptcy restriction orders put in place, 87 of which were related to the abuse of Covid loans.
Directors can be banned from being the director of a company for actions including failing to maintain adequate accounting records, not paying tax or VAT that is owed to HMRC, as well as securing a Covid Bounce Back loan they were not entitled to.
A director can be disqualified for up to 15…
