In construction, a customer’s financial health can turn faster than concrete can set. One month, they’re placing large orders, the next they’re delaying payments, dodging calls, or worse, going into administration.
Catching the warning signs early isn’t just good practice; it’s the difference between getting paid and writing off the debt.

At Top Service, we specialise in helping UK construction suppliers and subcontractors minimise debt and maximise cash through sector-specific credit information, early
warnings, and effective debt recovery.
Here’s what to watch for and how our services help you act before it’s too late.

Common Early Warning Signs of Financial Trouble
Even healthy-looking businesses can be in trouble behind the scenes.
Our members regularly report spotting these changes before the public data catches up:

1. Slower Payments or Broken Promises
   ○ A customer who always paid on time now needs “a few more days” —
   repeatedly.
   ○ Payment plans are agreed upon but not kept.
2. Unusual Ordering Patterns
   ○ Large, urgent orders out of nowhere that deviate from normal behaviour.
   ○ Requests for extended terms that don’t match their trading history.
3. Director Changes or Multiple Directorships
   ○ A new director was suddenly appointed.
   ○ A director linked to multiple struggling companies (something that can be
   missed if you’re only looking at Companies House).
4. Rising Number of CCJs
   ○ County Court Judgments appearing in their record. Even one is worth
   investigating.
5. Rumours in the Trade
   ○ Word travels fast in construction, sometimes faster than official filings.

How Top Service Alerts You Sooner
Many suppliers rely solely on free company checks or updates from insurance providers. The
problem? By the time that data changes, it’s often too late.

At Top Service Ltd, we specialise in credit management solutions tailored to the UK
construction sector. Our services help you spot issues before they impact your business:
● Real-Time Trading Experiences: Gain insights from fellow construction businesses
about payment behaviours.
● Comprehensive Credit Reports: Detailed financial information on limited and
non-limited companies.
● Director Monitoring: Get alerts on changes in directorships and affiliations to spot
hidden risks.
● Company Monitoring: Continuous updates on your clients’ financial health

Why Acting Early Matters
Once a company enters formal insolvency, your recovery options are limited.
If you see the signs early, you can:
● Tighten credit terms or request upfront payments.
● Reduce exposure before debts escalate.
● Initiate debt recovery action while the company still has funds

Want to see how quickly our alerts can work for you?
Ask us about our free trial and see the difference industry-specific intelligence makes.
📞 Arrange a demo | 💬 Ask an expert | 🔗 Join us now

The latest insolvency figures are in, and after an overall decrease last month, insolvencies have now plateaued.

In July 2025, 2,081 companies across England and Wales became insolvent compared to :

2,053 in June

2,078 in July 2024

Breakdown of insolvencies (July 2025)

• Compulsory liquidations: 339 (slightly higher than June and 2024 averages)
• Creditors’ voluntary liquidations (CVLs): 1,583 (stable compared to June and the 18-month average)
• Administrations: 147 (higher than June)
• Company voluntary arrangements (CVAs): 12 (lower than June)

 Key Trends (Aug 2024 – Jul 2025)

• Insolvency rate: 52.5 per 10,000 companies (1 in 190) – down slightly from 56.6 per 10,000 a year earlier.
• While numbers are lower than the 30-year peak in 2023, insolvencies remain elevated compared to pre-pandemic norms.
• Construction, retail, and professional services have consistently ranked as the top 3 most affected sectors in the past 12 months.
• Insolvency risk is most acute in sectors with high competition, tight margins, and exposure to economic cycles. Construction remains the standout area of concern, followed by retail and professional services.

The construction sector continues to be one of the hardest-hit industries for company insolvencies. According to the latest figures:

July 2025 Overview

• Total construction insolvencies: 427 cases in July
• This is slightly lower than June (447) but broadly in line with May (429).
• The sector consistently accounts for one of the highest shares of monthly company insolvencies across all industries.

Construction Insolvencies by Type

• Creditors’ Voluntary Liquidations (CVLs): 325 cases (76%)
  • By far the most common route, reflecting subcontractors and SMEs winding up after unsustainable financial strain.
• Compulsory Liquidations: 68 cases (16%)
  • Rising trend compared to 2024, showing creditors (including HMRC) are more aggressively pursuing unpaid debts.
    
• Administrations: 30 cases (7%)
  • Typically, larger or mid-tier contractors are attempting restructuring or business sales while continuing some operations.
    
• Company Voluntary Arrangements (CVAs): 4 cases (1%)
  • Rare in construction, but occasionally used by firms seeking an agreement with creditors to continue trading.

 Trend over the last 3 months

• May 2025: 429 insolvencies
• June 2025: 447 insolvencies
• July 2025: 427 insolvencies

While numbers remain volatile month to month, construction insolvencies have held steady around the 430–450 range, showing little sign of easing.

Key Insights

• Specialised trades (finishing, M&E, and fit-out contractors) remain the most vulnerable part of the supply chain, representing nearly half of all construction insolvencies.
• Civil engineering is comparatively stable, with consistently low insolvency numbers.
• Insolvency volumes are still high compared with pre-pandemic levels, underlining the ongoing financial strain across the sector from inflation, interest rates, and delayed payments.

Our Take – What Should You Do?

The July 2025 insolvency figures underline that construction remains one of the hardest-hit industries. Over 400 companies failed last month alone, with specialist trades such as plumbing, electrical, and finishing contractors most exposed.

While overall UK insolvency rates have eased slightly from last year, construction insolvencies have held stubbornly high for three months in a row. Subcontractors in particular face rising costs, late payments, and tight margins that leave little room to absorb financial shocks.

The message is clear: cashflow control, stronger credit management, and fairer payment practices are essential if the sector is to weather these pressures and protect its supply chain.

It’s time to be proactive, and that starts with information specific to your business.

👉 If you’d like to explore strategies to safeguard your business and strengthen resilience, get in touch with our team today.

At Top Service, our mission has always been clear – to help our members minimise debt and maximise cash. That’s why we’re delighted to announce our new partnership with Opus Restructuring & Insolvency, the UK’s largest independent corporate restructuring firm and a leader in creditor advisory services.

Through this partnership, our members will have direct access to Opus’ specialist Creditor Services division, giving you more tools, expertise, and support when it comes to protecting your business and recovering debt.

By combining Opus’ proven track record in creditor recoveries and insolvency with Top Service’s real-time payment data and insight from over 6,000 construction branches and depots across the UK, our members will benefit from:

• Earlier warnings of financial distress in customers
• Faster, more informed decision-making on credit risk
• Stronger representation and results in insolvency situations

“Top Service is a long-standing, trusted name in credit control for construction,” said Mark Ranson, Partner at Opus. “Together, we’re uniquely positioned to help firms spot risk early, make informed credit decisions, and act swiftly when things go wrong.”

The services now available to Top Service members include:
✔ End-to-end claims management
✔ Representation at creditor meetings and committees
✔ Intelligent monitoring tools with real-time alerts
✔ Portfolio reporting with risk ratings and recovery summaries

This support is available to members immediately.

📞 To find out more, contact our team on 01527 518800 or email membership@top-service.co.uk.

Recovering What You’re Owed While Protecting Valuable Relationships

In the construction industry, credit risk is a fact of life — but so are long-standing client relationships that you don’t want to jeopardise.

At Top Service Ltd, we understand the delicate balance: getting paid while preserving future work. That’s why we specialise in fair, professional debt recovery that’s built around the realities of construction trading.

Here’s how to recover outstanding debt without damaging your reputation, relationships, or repeat business.

🤝 1. Know When to Chase – And When to Escalate

Not every late payment is a warning trigger. But over time, delayed payments can indicate deeper issues, such as:

• Cashflow pressure or overtrading
  
• Poor credit management
  
• Looming insolvency
  

Top Service Tip:
Don’t wait too long. Set internal “triggers” for when to escalate.

⏱️ The earlier you escalate, the better the recovery chance.

🗣️ 2. Keep Your Language Firm But Professional

When collecting overdue payments:

• Stay factual and non-accusatory
  
• Reference agreed terms clearly
  
• Offer a path to resolution, not just a threat
  

Example:

“As per our agreed 30-day terms, the payment was due on [DATE]. We understand delays can happen — please let us know if there are any issues; otherwise, payment is now required in full to avoid escalation.”

⚠️ 3. Don’t Be Afraid to Use External Support

Many businesses fear that bringing in a third party means the relationship is over. However, in reality, our professional, non-confrontational approach often enhances communication and demonstrates that your business is serious.

🛠️ We approach debtors with empathy, construction knowledge, and a focus on resolution — not threats.

When handled professionally:

• You get paid faster
  
• Clients respect your process
  
• Future work stays on the table (when appropriate)
  

💬 4. Recovery with Reputation in Mind

Top Service isn’t a call centre or a generalist agency. Our sector knowledge allows us to:

• Understand the chain of supply complexities
  
• Reference industry-standard practices (Construction Act, PPC etc.)
  
• Avoid aggressive tactics that damage your standing
  

We represent your business with integrity, professionalism and care.

“They recovered a difficult debt for us quickly — and the customer actually thanked us for being respectful. We’re still working together.”
— TS Customer Feedback, 2024

🧠 5. Learn from the Debt

Every unpaid invoice is a lesson.

Ask yourself:

• Were the terms clear enough?
  
• Did we credit-check the customer properly?
  
• Were any early warning signs missed?
  
• Could we have escalated earlier?
  

Top Service helps customers build better front-end processes to reduce repeat problems, including:

• Tailored credit reports
  
• Trading alerts and monitoring
  
• Guidance on payment terms and guarantees
  

✅ Your Action Plan

1. Document your escalation timeline – and stick to it
   
2. Use a firm but respectful tone when chasing
   
3. Refer to the signed terms and agreed payment dates
   
4. Bring in Top Service early – don’t wait until it’s too late
   
5. Review what went wrong – and tighten processes next time
   

Need a second opinion on a tricky overdue account?
📞 Ask an Expert – our credit control advisors are here to help.

The latest insolvency figures are in, and the construction industry is still under pressure despite a decrease in insolvencies across the board. In the last month, 385 construction businesses became insolvent.  An 18% increase from May 2025.

In June 2025, 2,043 companies across England and Wales became insolvent:

• 8% decrease from April
• 16% lower than May 2024

This includes:

• 1,585 creditors’ voluntary liquidations (CVLs)
• 332 compulsory liquidations
• 111 administrations
• 15 company voluntary arrangements (CVAs)

CVLs still account for 77% of all insolvencies, a sign that although a decrease in Insolvencies, businesses are still choosing to close voluntarily. 

1. Construction: The Most Impacted Sector

In the last month, 385 construction businesses became insolvent.  An 18% increase from May 2025.

That’s more than:

• Wholesale and retail (348)
• Accommodation and food services (295)
• Manufacturing (181)

Looking at the past 12 months to May 2025, 4,056 Construction businesses became insolvent, still a huge 17% of all cases where the sector was identified.

Other industries that experienced a high number of insolvencies in the 12 months to May 2025 were:

• Wholesale and retail trade (3,677),
• Accommodation and food service (3,381),
• Manufacturing (1,973).

The construction sector continues to face the sharpest end of credit risk.  Operating costs, tight margins, and cash flow pressures are forcing many firms to exit the market.

1. What’s Driving the Numbers?

While insolvency rates are still below the 2008–09 peak, the upward trend is clear:

• Insolvency rates are now 52.4 per 10,000 companies (down from 53 in May)
• June saw a 6% drop in compulsory liquidations (still higher than June 2024)
• Administrations were 18% lower than in May 2025, while CVAs were 7% higher

Our Take – What This Means for You

Insolvency numbers may be falling overall, but in the construction industry, the picture is more complex. Many of our members report that despite these figures, things feel ‘eerily’ quiet — a possible sign that financial distress is building beneath the surface.

That’s why it’s more important than ever for credit managers to remain vigilant: reviewing credit control practices, using industry-specific intelligence, and acting on early warning signs.

At Top Service, we go beyond the headlines. As the UK’s only credit reference agency dedicated solely to the construction industry, our unique network of sector-specific trading data and member-led intelligence gives us a crucial edge. Our members frequently report delayed or inconsistent payments from a company up to a year or more before formal insolvency, enabling us to alert others to act early, adjust credit terms, or cease supply altogether.

It’s time to be proactive, and that starts with information specific to your business.

1.  What Should You Do Now? 

• Use credit reports combined with industry insights to stay informed
• Act early on overdue debts – don’t wait for insolvency to strike
• Speak to experts who understand the construction industry
• Track changes in customer behaviour – sudden CCJs, changes in directors, missed payments.

2. Do you want to receive real-time updates to protect your business? Join Top Service today and trade with confidence.

At Top Service Ltd, we help construction businesses:

• Stay one step ahead of insolvency risk
• Minimise debt exposure
• Make confident credit decisions
• Get paid faster

Let’s Talk – With the right tools and real-time industry-specific data, your business can trade safely, without the surprises.

Staying Ahead of New Rules That Could Impact Your Payments, Contracts, and Credit Risk

In an industry already facing rising material costs, tighter margins, and late payments, staying informed about legislative changes isn’t just good practice — it’s essential to protecting your cash flow.

At Top Service Ltd, we specialise in credit management solutions tailored to the UK construction sector. Here’s a clear guide to what’s changing in 2025 — and how to protect your business from unnecessary risk.

1. Construction Act: Know Your Rights on Payment

The Housing Grants, Construction and Regeneration Act 1996 (often called the Construction Act) gives subcontractors and suppliers the right to fair payment terms and a dispute resolution process via adjudication.

Key reminders:

• Payment terms must be clearly defined in the contract.
  
• You’re entitled to interim payments on longer-term contracts.
  
• If payment is late, you’re legally allowed to suspend work after serving notice.
  

 2. Fair Payment Code: Moving Beyond the Prompt Payment Code

In 2024, the government introduced the Fair Payment Code — evolving from the Prompt Payment Code — to hold larger firms accountable for how they treat suppliers and subcontractors.

Key changes:

• Large businesses must publicly report their actual payment performance.
  
• Public sector buyers are being encouraged to exclude poor payers from major frameworks.
  
• There is a growing move toward 30-day payment terms as standard, especially for SMEs.
  

What this means for you:
If you’re being paid late, you may be able to use this new code to put pressure on clients, especially where public contracts are involved.

Top Service can support: Our members get access to real-time credit information, so you can track which contractors are falling behind before it affects your business.

3. Companies House Reform: Identity Checks and Transparency

As part of the Economic Crime and Corporate Transparency Act 2023, changes at Companies House are rolling out through 2025 to improve corporate accountability.

What’s changing:

• Identity verification for all directors and PSCs (people with significant control) — stopping fake or hidden entities.
  
• Companies House gains more powers to challenge and remove false or misleading information.
  
• More cross-checking between agencies (e.g. HMRC) for red-flagged behaviours.
  

Why this matters:
You’ll be better able to trust the details you’re seeing in public filings — and if something doesn’t look right, it’s a strong sign to carry out more in-depth credit checks.

Top Service tools: We cross-reference real-time trade payment data with Companies House filings — helping you spot discrepancies early.

4. Changes to Insolvency and CVAs (Coming Later in 2025)

While nothing is confirmed yet, the UK Government is consulting on tighter regulations around Company Voluntary Arrangements (CVAs) and pre-pack administrations. These measures aim to:

• Improve transparency for unsecured creditors
  
• Prevent “phoenixing” — where directors walk away from debts and restart under a new company
  
• Strengthen creditor rights in restructuring
  

Construction relevance:
Historically, the industry has seen contractors leave behind debts through CVAs, often hitting suppliers hardest. These reforms aim to reduce that risk — but they’ll need enforcement.

  In 2024, the average dividend from construction insolvencies was under 6p per £1 owed.

Our role: We monitor and alert you to early warning signs of financial troubles, insolvency filings, payment suspensions, and creditor meetings involving your customers — in real time.

5. Contract Clauses and Legal Enforcement: It Starts With Strong Terms

Poorly written contracts are one of the most common reasons payment disputes end badly. The legal landscape is evolving, but your own paperwork is your first line of defence.

Does your contract:

• Define clear payment milestones and penalties for delay.
  
• Include interest charges and legal recourse if payments are missed?
  
• Require personal guarantees from directors where appropriate?
  

Summary: Stay Compliant, Stay Paid

Legal changes can feel abstract, but for UK construction firms, the implications are very real:

• Get paid faster
  
• Avoid bad debt
  
• Reduce legal and financial risk
  
• Spot trouble before it starts
  

Need help reviewing your contracts or chasing overdue payments?

We’re the UK’s only credit management specialists focused solely on the construction sector.

📞 Arrange a demo call
📩 Ask a credit expert

👉 www.top-service.co.uk
☎ 01527 503990
📨 info@top-service.co.uk

In construction, a handshake can still seal the deal — but when things go wrong, that informal approach can cost you time, money, and reputation.

At Top Service Ltd, we’ve worked with thousands of credit professionals, merchants, and suppliers who’ve been caught in the crossfire of disputes over unpaid invoices, delivery terms, or liability. More often than not, the root issue is the same:

The client agreement wasn’t clear, or wasn’t in writing at all.

This month, we’re helping construction businesses understand how to build watertight agreements that prevent disputes before they happen — and protect your business if they do.

Why Strong Client Agreements Matter More Than Ever

With tight margins, complex projects, and increasingly cautious clients, construction suppliers are more exposed than ever to payment delays and disputes.

Some common risk scenarios:

• No written agreement on credit limits or payment terms

• Verbal changes to scope or delivery expectations

• Clients disputing quality or performance after materials are delivered

• Customers use unclear clauses to delay or reduce payments

Legal disputes are expensive, stressful, and time-consuming — even when you win.

 The 6 Essentials of a Strong Construction Client Agreement

To reduce the risk of non-payment or disputes, every agreement should clearly set out:

Top Service Tip: Agreements don’t need to be 10 pages long — but they must be clear, signed, and consistent with your internal processes.

Common Mistakes That Lead to Disputes

“We’ve always done business on a handshake”

“It’s just a small job — didn’t seem worth a contract”

“They paid late, but they always pay eventually”

These scenarios are all too familiar — and often lead to:

• Arguments over when materials were accepted

• Claims of non-delivery or incorrect products

• Late payments with no agreed terms to fall back on

• Legal costs that outweigh the debt being chased

We regularly support customers trying to recover debts where the only proof is an email trail, a verbal promise, or a vague purchase order.

How Top Service Ltd Supports You

We don’t just help you chase debt — we help you avoid needing to.

As a Top Service customer, you can:

Access credit application templates and advice

Get guidance on key clauses to include

Credit check new customers before you agree terms

Monitor accounts for changes in credit risk or trading behaviour

Recover unpaid debts professionally and fairly — even without a formal agreement

Our team understands what works in construction — and where credit risk turns into cashflow loss.

In the construction sector, offering credit is standard, but getting paid isn’t always guaranteed.

With high insolvency rates, late payment culture, and complex company structures, even the best customer relationships can end in unpaid debt. That’s why more suppliers, merchants and plant hire firms are asking one crucial question:

Should we ask for a personal guarantee?

At Top Service Ltd, we support thousands of credit professionals across the UK construction supply chain. Here’s what we advise when it comes to personal guarantees — and how they can protect your business when things go wrong.

What Is a Personal Guarantee?

A Personal Guarantee (PG) is a legally binding agreement where a director or individual agrees to personally repay a company’s debt if the business itself cannot.

In construction, this is especially useful when supplying to limited companies with few assets or new clients without an established credit history.

In practice, if a customer goes into liquidation, and you don’t have a PG, you could be left with no recovery options.

 Why Construction Businesses Are High-Risk Without a PG

The construction sector has the highest insolvency rate in the UK economy, and not just among small businesses.

Here’s why PGs matter more than ever:

• Many construction firms operate with thin margins and high overheads

• Project delays or non-payment from main contractors can cause rapid collapse

• Directors often close one company and reopen it under a new name

• Recovery through insolvency processes is often pennies in the pound, if anything

At Top Service, we’ve seen PGs make the difference between writing off a £50,000 debt… and full recovery.

 When Should You Ask for a Personal Guarantee?

Use this quick guide:

Tip: Don’t wait until there’s a problem. PGs should be signed as part of your credit application or T&Cs — not when debt is already owed.

 What Should a Good Personal Guarantee Include?

Make sure your PG is:

• Properly worded and legally enforceable

• Signed in the individual’s capacity

• Linked clearly to the credit facility or account

• Includes no time or limit restrictions, unless you intend them

• Witnessed (adds strength if ever challenged)

A Personal Guarantee Is Only as Strong as the Guarantor

It’s vital to understand that:

• A personal guarantee is only as strong as the individual behind it.

• If the guarantor has:

• No personal assets

• Poor credit history

• High levels of personal debt

• No meaningful income

…then the guarantee may offer little to no real security.

🧠Top Service Tip: Always credit check the individual as well as the company. If they’re unlikely to repay personally, consider lowering the credit limit, requesting pro forma payments, or strengthening your terms in another way.

 But What If They Say No?

That’s a real scenario. Some directors will be reluctant to put their name on the line.

When that happens:

• Consider reducing or capping the credit limit

• Request pro forma payment for initial orders

• Offer staged credit (i.e. increase limits only after timely payments)

• Make sure your terms of sale are watertight

Use a Top Service credit report to monitor behaviour closely

You don’t have to say no to the business, but you should adjust your risk strategy accordingly.

 How Top Service Ltd Can Help

We’re more than just a credit reference agency. We actively support our customers to:

✅ Identify when a personal guarantee is worth asking for

✅ Provide templates and guidance

✅ Credit check directors as well as businesses

✅ Monitor for changes in trading, payments or risk

✅ Chase unpaid debts efficiently — including PG recovery if needed

Our expert team understands the unique pressures in construction and how to manage credit risk without damaging relationships.

“Minimise debt, maximise cash” is more than a slogan — it’s a service promise.

🧾 Not sure when or how to ask for a personal guarantee?

We’ll show you the best practices and give you tools to make it easy.

👉 Ask an Expert | Register for a Free Trial | Arrange a Demo Call

Before You Supply or Sign: Key Agreement Clauses That Could Hurt Your Cashflow

In construction, it’s not always the job itself that creates risk — it’s the agreement behind the transaction. Whether you’re supplying materials, hiring out equipment, or offering trade accounts to contractors, the fine print in your terms and credit agreements can make or break your cash flow.

At Top Service Ltd, we work with thousands of UK merchants, suppliers and plant hire firms — and we see the same challenges repeat: vague payment terms, unclear responsibilities, and risky clauses that end up costing businesses thousands.

Here’s what to watch out for in your customer agreements, and how you can protect your income before you’re chasing overdue payments.

Why Clarity in Agreements Matters

Your terms of sale or hire agreement are more than admin — they’re your first layer of credit control.

• Poorly written terms (or relying on verbal promises) can lead to:

• Disputes over delivery dates or hire durations

• Extended or unpaid credit periods

• Confusion about responsibility for damage, loss, or delays

• Legal grey areas when it comes to recovering debt

Let’s break down the essentials that every supplier, merchant, and plant hire business should review in their contracts or T&Cs.

1. Credit Terms — Define the Rules Early

Clear credit terms = faster, more successful collections.

Your agreement should state:

• Exact payment terms (e.g. 30 days from invoice)
• Consequences for late payment (interest, suspension of credit)
• Whether any discounts or penalties apply
• Your right to withdraw credit or enforce legal recovery if terms are breached

 Top Service Insight: Many customers don’t enforce the terms they have — make sure they’re not only written, but also issued, signed, and followed.

2. Delivery & Hire Dates — Avoid Disputes Later

Unclear timelines can lead to payment delays or hiring disputes.

Your agreement should clearly state:

• When delivery is considered complete

• When hire starts and ends (especially for daily/weekly charges)

• What happens in case of delays, theft, or damage

• Requirements for off-hire notice or confirmation

 If your customer says “we didn’t use it” or “we didn’t receive it,” your only defence is a signed agreement and process proof.

3. Retentions & Delayed Payment Risks

While formal retention clauses are more common in subcontracting, suppliers and merchants often face similar delays when payment is linked to project milestones or main contractor processes.

If your client says:

“We’ll pay when we’re paid”

… This is a warning sign.

Note: “Pay when paid” clauses are unenforceable under the Construction Act 1996 — you have a right to payment regardless.

 4. Dispute Clauses — Set the Ground Rules

If something goes wrong — like goods in dispute or a plant allegedly returned damaged — how do you resolve it?

Include:

• Timeframes for raising a dispute (e.g. 7 days after delivery)

• Clear return or off-hire processes

• Preferred resolution process (written notice, mediation, legal action)

 Disputes should be the exception, not the reason invoices go unpaid.

 5. Risk Clauses That Could Hurt You

Many suppliers use outdated templates that don’t reflect the realities of construction supply. Be on the lookout for clauses that:

🛡️ How Top Service Ltd Supports Suppliers & Merchants

As construction credit specialists, we help your business:

✔️ Check the creditworthiness of new customers before offering terms

✔️ Get early alerts on customers entering financial difficulty

✔️ Collect overdue accounts without burning bridges

Our team of credit management experts understand the nuances of supplying to contractors — and how to protect your cashflow from day one.

“Minimise debt, maximise cash” isn’t just our tagline — it’s our mission.

A company director behind multiple fraudulent VAT claims—including through a UK-registered construction firm—has been banned from acting as a director for 11 years.

Hassan Waqar, now based in Dubai, was the director of four businesses, including Kiani Construction Limited, which operated in the UK real estate and construction sector. All four companies submitted falsified or unsupported VAT repayment claims, reclaiming nearly £400,000 they were not entitled to. Combined, they owed HMRC over £1.1 million when they were struck off the Companies House register between February and June 2023.

Kiani Construction Limited, along with the other companies—HN Restaurants, Moneemint Ventures, and Zoya Investments—submitted forged invoices and altered bank statements. In several cases, suppliers confirmed to HMRC that the invoices provided had not been issued by them.

Waqar has now been disqualified from acting as a company director in the UK until 2036. He also faces personal liability for certain debts under HMRC’s joint and several liability powers.

“Our investigations found he failed to provide supporting evidence for claims across multiple businesses,” said Victoria Edgar, Chief Investigator at the Insolvency Service.

“The Insolvency Service is committed to taking action against directors who fail to meet their legal and financial obligations.”

What does this mean for construction suppliers?

This case is a clear reminder of the importance of due diligence when engaging with clients or subcontractors. Fraud, insolvency, and unpaid debts continue to pose a serious risk across the construction supply chain.

Top Service works exclusively with businesses in the construction sector to provide real-time credit information, risk alerts, and detailed reporting that help suppliers avoid exposure to high-risk companies before they become a problem.

Whether you’re supplying materials, managing subcontractors, or quoting for work, accurate credit data and early warning signs are essential.

Make informed decisions. Protect your business.

Learn more about how Top Service supports credit control teams in construction at top-service.co.uk

📎 Official government source:
Dubai-based director who falsified VAT returns banned after £1 million owed