ICSM Logistics Insolvency News: a tax bill is often the final blow for hauliers operating on small margins
By Harry Mottram: It may not be one thing but a combination of factors can sink a firm as the economy continues to flatline as we enter 2026. A hike in National Insurance contributions, rising non-fuel costs, expensive spare parts, high energy prices and interest rates can eat away profitability. A sudden tax bill or the loss of a major contract can spell the end as happened to the haulier Norfolk Straw Products, who were hit by a tax bill from HMRC of £190,000 last autumn. The firm had 12 HGVs and 15 trailers and were forced to surrender their licence and were voluntarily wound up after the taxman served a petition in October.
Worcestershire based News Transport founded in 1969 entered administration in November. Writing for the trade publication Motor Transport Chris Tindall reported: “The haulier held an operator licence authorising 10 HGVs and six trailers running out of its Ampthill base but its surrender is now under consideration by the traffic commissioner.”
He added: “The haulier held an operator licence authorising 10 HGVs and six trailers running out of its Ampthill base but its surrender is now under consideration by the traffic commissioner.”
Meanwhile the journalist reported on the haulier BI Halder & Son that was sold at Christmas in a pre-pack after running into debt. He reported: “BI Halder & Son which had been operating since 1969, was facing a significant debt with HMRC for VAT payments, which had accumulated amid wage increases, the Covid 19 pandemic, soaring fuel prices and rising vehicle hire costs. Administrator Leonard Curtis said the arrears were in the region of £585,000 and so the East Yorkshire haulage company dealt with it by taking out a loan for £300,000 and arranging a time to pay (TTP) agreement with HMRC for the balance of £285,000. It made nine monthly payments of £12,000 while at the same time paying ongoing liabilities for both VAT and PAYE, but by January 2025 it no longer had sufficient funds to pay the December quarter’s VAT. BI Halder’s problems were compounded after the TTP arrangement was brought to the attention of its invoice finance company’s attention and it reduced the advance rate on financed invoices from 85% to 70%.”
The firm was sold to Halder Transport and Storage who have the same directors as BI Halder & Son for £346,548 and have retained the staff under TUPE regulations.
WSH Logistics in Herefordshire also collapsed at Christmas after the value of its sales ledger was hugely overstated, while other factors included an expensive move to new offices a shortage of drivers, high rental charges and interest rates, as well as the national insurance increase. Ian Carrotte of ICSM said all these winter casualties had the usual problems but often the failure to put aside money for HMRC can be the final blow.
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