Insolvency technical update: May 2026

Read our latest insolvency technical update – your round-up of the recent developments in insolvency.

SIP 2 consultation

The Joint Insolvency Committee has launched a consultation on proposed changes to SIP 2 - Investigations by office holders in administrations and insolvent liquidations and the submission of conduct reports by office holders.

Find out more information on the proposed changes and how to respond to the consultation.

Dear IP

The Insolvency Service has published Dear IP 170 which includes information on:

• Protecting employee and consumer creditor information in filings at Companies House.
• A change to how UK sanctions designations are published.
• Templates for submitting information on IVAs, court orders, registration matters and practitioner records to the Insolvency Service (see also Dear IP 171).
• Consultation on Corporate Civil Enforcement Reform.
• Dealing with businesses that hold a Facility Security Clearance status to safeguard UK Government classified documents.

Tax advisor registration

Mandatory registration with HMRC for tax advisers came into effect on 18 May 2026. 

The definition of a tax adviser is wide and there’s an exemption for anyone interacting with HMRC because of a legislative requirement. This exemption will cover insolvency practitioners when carrying out a formal insolvency appointment. It won’t cover restructuring, pre-appointment, or activity such as negotiating debt payment plans with HMRC.

Registration is at a firm level and where an HMRC Agent Services Account (ASA) is already operated no action is required at this stage – HMRC will get in touch with the firm at a later date to request further information. Where no ASA is operated then firms have three months from 18 May to complete their registration with HMRC.

Find out more information on mandatory tax adviser registration.  .

HMRC has also published the first sections of their new manual in connection with mandatory tax adviser registration:

• Scope and requirement to register
• Checks against registration conditions

Approved vehicle mileage rates

HMRC’s approved rates for reimbursement of business travel costs have increased.

Mileage can now be reimbursed at 55p per mile for the first 10,000 miles, up from the previous rate of 45p per mile. This increased rate has been backdated to be effective from 6 April 2026.

Advisory fuel rates, which apply from 1 June, have also increased for petrol and diesel cars.

ICAS Code of Ethics

A revised ICAS Code of Ethics has been published, effective from 1 July 2026. The updated Code brings in provisions relating to tax planning and related services and with new application material in relation to professional behaviour. Read more about the updated Code of Ethics. 

There are no changes to the Code of Ethics: Part 10 - Insolvency Practitioners. This already includes equivalent application wording in relation to professional behaviour at paragraph 2105.1 A2. This is being introduced into the main code at 115.1 A2. Additional Guidance to the ICAS Code of Ethics: Fundamental ethics principal of professional behaviour – paragraph 115.1 A2 has been produced to accompany the revised ICAS Code of Ethics, and is equally applicable to paragraph 2105.1 A2.

Legal updates

Anthony Malcolm Cork & Anor v Mark Smith [2026] EWHC 1199 (Ch) The English High Court provided a stark reminder that using AI comes with material risks, particularly where reliance on AI displaces professional judgement. The case concerned a block transfer application and how AI was used to research and put information to the Court.