14/10/2026
Hospitality businesses are paying 82p in business taxes for every ÂŁ1 of pre-tax profit, the highest effective tax rate of the UK sectors analysed.
With costs continuing to rise, the sector is facing significant financial pressure. There were 3,201 company insolvencies in accommodation and food services in the 12 months to August 2026, and our team is receiving liquidation enquiries from hospitality businesses.
Kirsty Mills, Senior Consultant at The Liquidation Centre, explains:
“A lot of the recent calls I’ve been having reflect just how difficult things are for some hospitality businesses. Rising wages, National Insurance and business rates are all adding up, and many are also paying 20% VAT on sales. When costs remain high and cash flow is under pressure, it can become increasingly difficult for businesses to keep on top of their financial commitments, despite their best efforts.”
If you’re a director struggling financially, a free discussion with our team can help you understand your options before the situation becomes more difficult.