An estimated 3,633 companies entered insolvency in Q3 2016, which was 2.2% higher than Q2 2016 and 1.1% up on the same period in 2015.

The worst affected sector was construction with 2,450 company collapses, although this was slightly better than 2015 equivalent figures. Next worst hit was the wholesale trade and vehicle repairs sector, followed by administrative and support services.

The figures to a degree mirror overall growth rates across the economy. The services sector provided all the expansion for GDP, up 0.8%, however construction, manufacturing and agriculture shrank during the third quarter. Construction was the worst performer, down nearly 0.1%.

The rate of business collapses is still substantially lower than the recession following the financial crash in 2008, when company liquidations hit 5,000 plus in Q3.

However, there are some concerns that in certain cases company directors can avoid liquidation and the formal insolvency procedure by being struck off the register by the Insolvency Service, thus avoiding the formal process as well as any outstanding tax liabilities.

Brian Johnson, insolvency partner at HW Fisher & Co said: ‘A lot of companies that should otherwise have gone through a formal insolvency procedure are managing to be struck off the register, thereby avoiding the scrutiny that the conduct of the directors would be subject to if a liquidator were in office.

‘In years gone by, HMRC policed this area rigorously and was far more likely to object to companies being struck off, but a lack of resources has opened this route up to opportunistic company directors.’

An estimated 2,569 companies entered creditors’ voluntary liquidation in Q3 2016, a 5.2% increase on the previous quarter and 2.2% higher compared to the same period in 2015.

The figures highlight a lack of confidence in certain market sectors and a failure to manage finances and cashflow at businesses, although insolvency and restructuring trade body R3, stressed that overall UK companies were in good shape.

The latest R3 and BDRC Business Index report, which measures business distress, found that one in five of the companies surveyed were experiencing a level of financial distress.

Andrew Tate, president of R3, said: ‘A quarterly rise in corporate insolvency numbers is not necessarily an indicator of Brexit-related financial problems for UK companies. At least, not yet. ‘While companies dependent on imports are struggling with the falling value of the pound, anecdotal evidence from our members suggests the vote to leave the EU has not led to more insolvency procedures due to factors other than the exchange rate. However, we are hearing that more companies have been coming to restructuring experts for advice.’

Uncertainty surrounding business the pre-Brexit climate is being watched closely, particularly in terms of impact of financial stability. Clive Lewis, ICAEW head of enterprise, said: ‘It seems that businesses are not employing solid financial management to deal with a tumultuous economic landscape.

‘The real test for businesses will be within the next 12 months, as an increase in inflation will mean less money in consumers’ pockets. Businesses should prepare now for the continuing uncertainty over Brexit.”

Over 600 companies were subject to compulsory liquidation over the period, up 3.5% on the previous quarter. There were also an estimated 75 company voluntary arrangements and five administrative receiverships in Q3 2016.

However, despite the rise in company insolvencies, the figures show a relatively benign climate with the liquidation rate at its lowest level measured in terms of total company numbers, since records started in 1984.

By contrast, personal insolvencies in England and Wales were up 6% on the previous quarter and were up substantially year on year, recording a 19.3% increase compared with the same period last year. The number of debt relief orders fell due to a change in the eligibility criteria which raised the threshold from £15,000 to £20,000.

The Insolvency statistics Jul-Sep (Q3 2016) are available here