It is important to note that we have a separation of fees between pre and post appointment work that we carry out.

Pre Appointment

This is work we undertake for individuals or companies prior to any formal insolvency appointment is undertaken. We charge for the time taken to undertake the work and the advice provided. We will tell you in a letter of engagement whether this a fixed fee or based on time costs.

Post Appointment

All insolvency practitioners are entitled to be paid for the work they do in a formal insolvency process under the Insolvency (England & Wales) Rules 2016 which sets out that the basis on which the fees must be fixed:  

• as a percentage of the value of the assets which are realised, distributed or both,
• by reference to the time properly given by the insolvency practitioner and staff in attending to matters arising in the estate (time costs), or
• as a set amount (fixed fee).

Any combination of these may be used to fix the fees and different bases may be used for different elements done by the insolvency practitioner. Where the fee is fixed as a percentage, different percentages may be used for different elements done.

These fees are agreed by creditors. If we request a time costs basis we are required to provide an estimate of the fees that will be incurred in the assignment.  We also in our reports set out headings of the type of activity carried out and whether this has any, little or no benefit to creditors (such as the many compliance and reporting duties).

We charge VAT

VAT is chargeable on all our services unless this is in relation to Voluntary Arrangements which are exempt.

How we charge (time costs)

The amount we charge is the number of hours worked for, multiplied by the hourly rate of the members of our team doing that work. Our hourly rate is divided into “units” of 6 minutes. There are 10 units in an hour (10 x 6 minutes = 60 minutes). It is important to note that when we do something for that takes less than six minutes, then it is rounded up to the nearest unit.

Our hourly rates vary according to the seniority of the person working for on the assignment and the nature of the work done.

The smallest unit of time we record is 6 minutes. Therefore, if we engage in a 2-minute conversation, that will be recorded as one unit. A call lasting 3, 4, 5 or exactly 6 minutes is still one unit and charge the same as a 2 minute call. If you spend 6-12 minutes on a call, then it counts as two units. So a seven minute call is twice the cost of a five minute call.

Example

A 3 minute phone call = one unit = 10% of an hourly rate

A 33 minute meeting = six units = 60% of an hourly rate

Things we charge for

We charge for the time we spend on the assignment. We try to break this down into certain categories, although there is sometimes crossover between one type of work and another. We will record time working on any aspect of the assignment, including;