In recent years, the voluntary strike-off process has become a common tool for winding down dormant or low-activity companies. But in 2025, directors should tread carefully. While the process may appear simple (file a DS01 form with Companies House and the company is struck off), doing so in the wrong circumstances can trigger investigation, sanction, or even disqualification.
With increasing creditor complaints and regulatory scrutiny, voluntary strike-offs are no longer a safe exit when a company is struggling.
What Is a Voluntary Strike-Off?
A voluntary strike-off is a request by a company’s directors to remove the company from the Companies House register under Section 1003 of the Companies Act 2006. It’s often used for companies that have ceased trading and have no assets or liabilities.
The process is administrative, not court-based, and involves filing a DS01 form along with a small fee.
But critically, the directors must declare that the company has no outstanding debts or ongoing legal action, and this is where the risk arises.
The Growing Problem: Strike-Off Used to Avoid Insolvency Procedures
Liquidators, creditors, and government agencies have reported a growing number of directors using voluntary strike-off to avoid formal insolvency procedures such as liquidation or administration.
This might include:
- Companies that owe unpaid tax to HMRC
- Unsettled loans or guarantees
- Ongoing legal claims or creditor disputes
- Unfiled accounts or avoidance of scrutiny over Bounce Back Loan use
In these cases, filing for strike-off can be seen as an abuse of process, especially if the directors knew the company was insolvent or expected claims to follow.
New Enforcement Activity in 2025
Regulators and creditors are no longer passive when a DS01 is filed under questionable circumstances. Enforcement responses now include:
1. Objections from Creditors
Any creditor can object to a strike-off by notifying Companies House. HMRC is particularly active in this regard and will automatically oppose strike-off in cases with outstanding tax debt.
If the objection is upheld, Companies House will suspend or reject the application.
2. Restoration and Liquidation by the Court
Even if a company is struck off, it can be restored to the register by creditor application. The court may then order liquidation, triggering investigation into directors’ conduct.
This can lead to:
- Personal liability for losses to creditors
- Reversal of transactions
- Reputational damage
3. Director Disqualification Investigations
The Insolvency Service can pursue disqualification under the Company Directors Disqualification Act 1986 if it believes the strike-off was used to frustrate creditors.
Directors who knowingly signed off on false declarations can be banned for up to 15 years, even if no formal insolvency occurred.
Recent Case Example: Strike-Off, Restoration and Disqualification
In a 2024 case, a marketing agency director filed for strike-off while owing over £40,000 in VAT and Bounce Back Loans. The company had ceased trading but failed to notify creditors. HMRC objected, the strike-off was paused, and a court-ordered liquidation followed.
The investigation found that the director had withdrawn funds in the final weeks without proper accounting and misused the strike-off process to avoid scrutiny.
Result:
- The director was disqualified for 6 years
- Held personally liable for part of the company’s tax debt
- Suffered reputational damage that affected other business ventures
When Is Strike-Off Still Safe?
Strike-off is still appropriate when:
- The company has genuinely ceased trading
- There are no outstanding debts or liabilities
- Creditors have been informed
- No legal claims are pending
- The accounts are up to date
Even then, it is best practice to give written notice to all known creditors and retain documentary evidence that the company was solvent at the time of filing.
Final Thoughts
Strike-off may look like the easiest way to close a company, but in 2025, it is also one of the most heavily scrutinised. Directors who file a DS01 without properly considering their duties can face real personal consequences.
At IL Advisory, we help directors navigate the closure of distressed companies safely, lawfully, and with a clear strategy to avoid unwanted fallout.
Speak to IL Advisory Before You File a DS01
If you’re thinking of closing your company, we can help assess whether strike-off is appropriate or whether formal insolvency is the safer option.
- Confidential director advice
- Risk assessment before you file
- Support with creditor communications and strategy
Call 020 7692 8456
Email info@iladvisory.co.uk
IL Advisory – Helping Directors Exit Responsibly.