Why Established Businesses Are Now at Greater Risk of Insolvency

For years, business failure has been seen as a ‘start-up problem.’ New ventures are often expected to face financial challenges, while established, family-run companies are viewed as safe, stable, and enduring.

But the data tells a very different story.

Across the UK today, approximately one in every 190 companies enters insolvency each year. And according to PwC, start-ups now account for just 46% of total insolvencies — the lowest proportion in a decade. This means established, long-standing businesses are increasingly at risk.

Even more concerning, the number of UK firms in “critical” financial distress has risen by 21.4% year-on-year, now affecting nearly 50,000 companies.

These are not inexperienced founders or speculative ventures. They are often multi-generational, family-run businesses, built through years of personal effort and sacrifice. For many directors, their company represents not just a livelihood, but their savings, pension, and home. When financial pressure strikes, the consequences are personal, far-reaching, and deeply felt.

When Legacy Businesses Come Under Pressure

At Bell & Company, we see this reality every day. Long-established businesses – from manufacturing and healthcare to hospitality and professional services – are finding themselves under increasing pressure from creditors, lenders, and, in particular, HMRC.

The rise in HMRC enforcement activity has been one of the major drivers behind recent insolvencies. Many firms find that a simple tax debt spirals into a crisis, not because their business is unviable, but because negotiations break down or communication stalls.

When that happens, enforcement action, asset freezes, or winding-up petitions can quickly follow.

A Case Study: How One Healthcare Business Regained Control

One recent case illustrates just how critical early intervention can be.

One of our clients, a healthcare business, had traded successfully for eight years. When they fell behind on a £238,000 PAYE debt, they attempted to negotiate directly with HMRC for a Time To Pay (TTP) arrangement. Unfortunately, their proposal was rejected, and enforcement action was imminent. This threatened the company’s future and, more pressingly, vital patient care and local jobs.

Our team stepped in to manage the situation strategically. Through transparent documentation, in-depth financial analysis, and a detailed understanding of HMRC’s Litigation and Settlement Strategy, we reframed the issue from a debt-recovery problem into a commercial viability case.

Within two months, we secured a 10-month Time To Pay agreement, halted enforcement proceedings, and restored HMRC’s confidence in the business.

The owner later told us:

“After months of struggling alone, I finally felt heard.”

Her business was given the second chance it deserved – proof that with the right support, viable companies can recover and continue to thrive.

How Bell & Company Helps Protect Viable Businesses

For over 15 years, Bell & Company has specialised in supporting both new and established businesses facing complex financial and creditor challenges.

We focus particularly on cases involving HMRC liabilities, such as:

• PAYE and VAT arrears
• Corporation Tax disputes
• Time To Pay (TTP) breakdowns or rejections
• Director’s personal guarantees and enforcement actions

Our approach combines forensic financial analysis, strategic negotiation, and direct engagement with creditors to reach realistic, commercially sound solutions.

Every business we assist is different, but our goal remains the same: to protect what you’ve built and ensure that financial pressure doesn’t erase years of hard work and personal investment.

Don’t Wait Until Options Disappear

One of the biggest challenges we see is that directors often wait too long before seeking help. By the time formal enforcement begins, the available options can be severely limited.

If your business is under growing pressure from HMRC, lenders, or enforcement agents, the most important step is to act early. Our experienced team can assess your situation, open lines of communication with creditors, and work towards a structured solution that preserves both your company and its future.

Our track record speaks for itself:

• Over 15 years of helping businesses navigate financial difficulty
• Hundreds of happy clients, success stories, and positive testimonials

Take the First Step Toward Regaining Control

If you’re feeling overwhelmed by creditor pressure or HMRC demands, remember: you’re not alone, and your business may have more options than you think.

At Bell & Company, we offer confidential, professional advice tailored to your circumstances. Whether you need immediate assistance with a Time To Pay arrangement or longer-term restructuring support, our team is ready to help.

👉 Click here to schedule a call with one of our specialists today.

And if you’re not quite ready to take action, download our free guide:
📘 “HMRC Business Debt – The Complete Guide.”
It’s packed with practical advice on how to manage, negotiate, and overcome HMRC debt challenges.