Charge out rates and expenses policy
In accordance with Statement of Insolvency Practice 9 (“SIP 9”) covering fees and expenses, we are required to disclose to you our policy for recovering non-specific expenses, and the charge out rates for the various grades of staff who may be involved in this case.
Remuneration
The office holder(s) will seek approval from creditors to draw remuneration on a time cost basis, in accordance with the rates detailed below.
| Grade | 01/11/2017 to 30/06/2018 | 01/07/2018 to 05/03/2020 | 06/03/2020 to 31/03/2021 | 01/04/2021 onwards |
|---|---|---|---|---|
| Director/Insolvency Practitioner | 500 | 500 | 500 | 500 |
| Manager | 400 | 400 | 395 | 410 |
| Assistant Manager | 395 | N/A | N/A | N/A |
| Team Leader | 390 | 390 | N/A | N/A |
| Senior Administrator | 330 | 395 | 300 | 310 |
| Administrator (dependent on experience) | 230-300 | 230-300 | 240-270 | 180-280 |
| Trainee Administrator | 180 | 180 | 180 | N/A |
| Assistant & Staff Support | 130 | 130 | 130-235 | 140-250 |
| All time is recorded on 6-minute units. |
Expenses
Expenses are payments from the estate which are neither an office holder’s remuneration nor a distribution to a creditor of member. Expenses also includes disbursements. Disbursements are payments which are first met by the office holder, and then reimbursed to the office holder from the estate. Expenses are divided into those that do not need approval before they are charged to the estate (category 1) and those that do (category 2).
Category 1 expenses
These are payments to persons providing the service to which the expense relates who are not an associate of the office holder. These expenses can be paid without prior approval. Examples of these are advertising, insurance, legal fees etc.
Category 2 expenses
These are payments to associates or payment which have an element of shared costs. Examples of a category 2 expenses that officeholders may seek creditor approval for would be for mileage costs or for hire of external rooms for physical meetings where the room is used for more than one insolvency, any such approval will be outlined with documentation for the relevant decision procedure.
Category 2 expenses are charged in accordance with the liquidator’s prevailing recovery policy at the time the expense is incurred. However, any Category 2 expenses incurred prior to the 1 April 2021 but for which payment has not been drawn, will not be charged after this date. The rates applicable from 1 April 2021 are detailed below:
| Expense | Charge | Period Charged |
|---|---|---|
| Mileage | As per HMRC’s approved milage rates | On appointment (where appropriate) |
In common with all professional firms, our charge out rates increase from time to time. We reserve the right to change the rates without prior notice to you. Any change will be reported in the next statutory report to creditors.