The cost of an insolvency practitioner depends on the type of procedure set to be carried out for the company or individual.

What service do I need and how much does it cost?

An insolvency practitioner is able to carry out a range of services and each one has a different payment structure. How much an insolvency practitioner costs will be very much dependent on which service you require. Some services will have a set fee, whilst others will have time costs or monthly payments. In some cases, there may be a combination of both.

How much does an insolvent Creditors Voluntary Liquidation (CVL) liquidation cost?

A CVL is a process that formally closes an insolvent company.

The costs incurred in the process of a creditors voluntary liquidation depends on but are not restricted to:

• The nature and size of the company in question
• The level of its debt and the quantity/value of its assets
• Time spent collecting debts, including those with directors
• Dealing with staff redundancies

If you are considering placing your company into a creditor’s voluntary liquidation, we can provide a free consultation to help you explore your options and the cost involved.

How much does a solvent Members Voluntary Liquidation (MVL) cost?

An MVL is the formal closure of a solvent company in a tax-efficient manner.

We have a tiered approach to help you understand the cost of an MVL.

• £995 + VAT + expenses – Simple MVL with in specie distribution
  This option is for straightforward companies where there are no other matters to be dealt with as part of the liquidation. The company’s remaining value is held as cash at bank or a director’s loan account balance and can be distributed in specie. An in specie distribution can allow company funds to be distributed on day one of the liquidation, subject to the company meeting the required criteria.
• £1,995 + VAT + expenses – Simple MVL with physical cash distribution
  This option is for straightforward companies where there are no other matters to be dealt with as part of the liquidation. The liquidator will receive the company’s cash into the liquidation and physically distribute it to shareholders. The company funds will be distributed to shareholders in line with their shareholdings once the cash has been received into the liquidation.
• £2,500 + VAT + expenses – MVL with HMRC tax or VAT refund claims
  This option is for otherwise straightforward companies where corporation tax or VAT refunds need to be claimed from HMRC as part of the liquidation. This may be suitable whether the company’s existing funds are distributed in specie or by physical cash distribution.
  This may apply where the company has:
  • The company is due a corporation tax refund
  • The company is due a VAT refund
  • The refund needs to be received into the liquidation and distributed to shareholders

This tier is designed for MVLs where the main additional work is claiming corporation tax or VAT refunds from HMRC.

• Bespoke fee – Complex MVL
  Some MVLs need a bespoke quote because of the nature of the company and its position.
  This may apply where the company has:
  • Property, shares, investments or other assets
  • Assets that need to be sold or realised
  • Section 455 tax refunds
  • HMRC enquiries or investigations
  • Outstanding or disputed creditor claims
  • Active pension schemes
  • More complex shareholder or distribution requirements
  • Solvent restructuring requirements, including Section 110 reorganisations

A bespoke fee will be confirmed once we understand the company’s position and the work required.

Shareholder note: Where there are more than three shareholders to receive a distribution, an additional £100 + VAT per additional shareholder is added to the liquidators’ fee.

All tiers include the option for an in-specie distribution of company funds (a potential “day-1” distribution), subject to a final corporation tax return being provided.

How much does an administration cost?

An administration is the managed closure of a company to maximise the return to creditors. It provides the insolvency practitioner sufficient time to formulate a plan, outlining how to restructure or sell the company and its assets.

There are no fixed costs and the insolvency practitioners’ fees will most likely depend on the amount of time spent on the job. During an administration, the insolvency practitioner will see out any remaining work left within the business to maximise the return to creditors, as well as realising assets. So, the cost will depend on the amount of work for the IP to do.

How much does a CVA cost?

Company Voluntary Arrangement (CVA) is a process whereby insolvent companies can set up a formal debt repayment arrangement with creditors.

While there is no fixed cost for a Company Voluntary Arrangement, appropriate fees depend on the individual circumstances surrounding the company. These may include the number of creditors, level of debt, and nature of the business and its assets. 

How much does an IVA cost?

An individual voluntary arrangement is for individuals and sole traders, to allow them to group all of their unsecured debts into one affordable monthly repayment.

An IVA has no fixed costs, and how much you’ll pay is decided on a case-by-case basis. IVA fees are ususally divided into three categories: Nominee fees, Supervisor fees, and expenses. Each covers different types of fees, associated with the cost of the IVA application, its implementation, and maintenance.

How we can help

Each one of the procedures above, must be carried out by a licensed insolvency practice such as ourselves. We are qualified to carry out all of the above procedures and can help walk you through all of the processes for our way of costing. If you’re looking for financial advice and would like a quote, then we provide free confidential advice.

1. Speak with our initial advisers via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth.
2. During the consultation, we will advise if an insolvency procedure is the most appropriate route forward, or what alternative options are available.
3. After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.

In summary

Generally, there are no set costs for an insolvency practitioner, it depends on the type of job, as well as the complexity and size of the job in question. Each procedure mentioned above must be carried out by a licensed insolvency practitioner and they will always work to provide the best return for creditors and the company directors.

Case Studies

Principal Packaging Ltd

Kelly Burton • Service Agency • Administration

Sheffield administrators Wilson Field has helped save all 14 jobs at a Lancashire packaging supplier and manufacturer after it was bought out of administration.

Administrators Kelly Burton and Joanne Wright from business turnaround experts Wilson Field were appointed joint administrators on 17 February after Principal Packaging Ltd suffered cash flow problems.

The company, based at Pit Hey Place in Skelmersdale, was one of the main independent providers of quality packaging for the retail food industry, and major food and dairy suppliers.

Directors Tracy and Richard Sharratt took early advice and the business was sold to new company Surepac Ltd as a going concern saving all 14 employees’ jobs.

Kelly Burton from Wilson Field said:

“Historically, the company offered a holding service to its customers. This meant that it held a significant amount of stock at any one time, which tied up a substantial amount of cash.

“This created cash flow problems and was exacerbated in the early part of 2016 when the amount available on the company’s funding facility was reduced.

“Directors took early advice from Wilson Field with the business sold to Surepac Ltd as a going concern, safeguarding all 14 employees’ jobs. The new company will offer the same service and standards and will operate under the same management team”.

Principal Packaging, started in 2006, served packaging needs for meat, fish, horticulture and poultry sectors throughout the United Kingdom and Ireland and traded successfully in the early years.

It gained a reputation for being one of the most professional, yet affordable, companies in a competitive market with its high-quality paper, plastic or board packaging, custom print services and high customer service levels.

Catering Butchers

Kelly Burton • Leisure & Hospitality • Administration

A previously successful, family-owned and managed catering butchers saw its turnover eradicated by the Covid 19 outbreak.

Following a review of all the options with the team at Wilson Field, the directors decided to appoint WF as Administrators.

Kelly Burton, director and insolvency practitioner at Wilson Field added:

“Like many over the pandemic, unfortunately there were some difficulties encountered as the business struggled to keep up its strong sales. However, we are continuing ro release the assets for the benefit of the creditors.”

Due to a lack of funding, the business unfortunately ceased to trade, however, the Administrators have managed to secure the debtor ledger and a sale of the remaining tangible assets, for the benefit of creditors.

Designer Recliners Limited

Kelly Burton • Manufacturing • Administration, Company Voluntary Arrangement (CVA)

A Sheffield furniture manufacturer and upholster has relaunched offering a smaller, more specialised range of products.

Anico Interiors Limited, which included reclining chairs for the elderly, had suffered cash flow problems and issues with profitability.

Designer Recliners Limited, managed by director Nick Wall, has purchased the assets and business of Anico saving all 11 jobs.

Andy Wood and Robert Dymond from Sheffield business turnaround experts Wilson Field were appointed joint liquidators on 8 June and advised on the sale of the 14-year-old company, based on Orgreave Crescent at Orgreave Industrial Estate, as a going concern.

Andy Wood, associate director and insolvency practitioner at Wilson Field said:

“Historically, the company offered a wide range of products but has now streamlined its offer to customers and cut out some unprofitable lines, as well as re-vamped its web site.

“Directors took advice from Wilson Field with the business sold to new company Designer Recliners Limited as a going concern, safeguarding all 11 employees’ jobs. The new company will offer the same service and standards under the same management team but focus on a smaller range of specialised products.”

The company employs skilled staff including upholsterers, seamstresses and cutters and was set up in 2002 by Nick Wall.

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