Taxpayers could miss out on claiming millions of pounds if Sir Philip Green's Arcadia Group collapses today.

A move into administration on Nov 30 could prove controversial as it comes a day before the reintroduction of Crown preference, abolished in 2003, which puts the HMRC at the top of the queue for taxes owed by bust companies such as VAT and employee PAYE.

The reintroduction of Crown preference means taxes collected by collapsed companies must be paid off before any funds can be repaid to banks that have given loans backed by a floating charge over assets such as cash or stock.

Sectors such as retail, automotive, agriculture and construction are expected to be some of the most severely affected by the changes, along with firms that have built up tax liabilities after reaching Time to Pay agreements with HMRC during the pandemic.

By a quirk of timing, Arcadia's potential administration could coincide with the rule change, as first reported by The Telegraph.

Arcadia sank close to a £100m loss in 2018, and 13,000 jobs are at risk if the company falls into creditors' clutches.

Meanwhile Mike Ashley’s Frasers Group has confirmed that it made a £50m loan offer to Arcadia as the Topshop owner teeters on the brink of collapse.

In a short update to investors, Frasers said it had offered the emergency lifeline to keep Sir Philip’s empire afloat and was now "awaiting a substantive response".

It added: "Should [Frasers] and the Arcadia Group's efforts to agree an emergency funding package fail and the Arcadia Group enter into administration, [Frasers] would be interested in participating in any sale process."

Mr Ashley used similar tactics prior to the collapse of Debenhams in 2019 and the move will most likely escalate the rivalry between the two men.

On Friday, Mr Ashley told ITV that he was interested in buying all of Arcadia's brands.

The Arcadia Group, which has 13,000 staff and 550 stores across brands including Topshop, Burton, and Dorothy Perkins, is on the brink and could enter administration as early as Monday, sources told The Telegraph.

The potential collapse of Sir Philip’s empire also threatens to have a domino effect on the high street.

JD Sports backed away from its own exclusive talks around a potential deal to acquire troubled chain Debenhams.

Arcadia is Debenhams’ biggest concession holder and City sources linked its potential demise to JD’s withdrawal from the process to buy the department store.

Over the weekend, Arcadia's former chief executive Lord Rose also said a break-up of the retail empire was the "only way forward".

Lord Rose, now chairman of Ocado, went on to run Marks & Spencer and famously fought off a takeover bid from Sir Philip in 2004.

The retailer said  that Arcadia had been "caught out" by the pace of change in retail even before the pandemic struck.

Frasers has been on an acquisition spree this year, raising its stakes in Mulberry and Hugo Boss.