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I agree, Guy, these guys' default means the rest of us has to pay more in income tax, or HMG has to borrow more. I suggest that on every bill paid a payment of 10% has to be placed in an 'income tax reserve account', possibly into a separate bank account in that name, with the total being paid quarterly to HMRC, a bit like VAT. If at the end of the tax year there is a tax shortfall they have to find the balance, if a surplus then they can claim a refund. Such an account should be immune from all creditors as it is in fact HMRC's money held on trust. Such a system should ensure that these large insolvencies do not occur in future, well not to the same extent anyway. As a quid pro quo HMRC should be required not to raise tax assessments on bills which have not been, and which may never be, paid. Accountants who audit such companies can be required to confirm that these reserves are being made.

After all, employees do not even see their income tax, it is taken and paid away at source.