A Creditors Guide to Fees
Statement of Insolvency Practice (SIP) 9
If you would like us to send you a hard copy please let us know.
An Insolvency Practitioner (IP) is someone who is licensed and regulated by the Department for Business, Energy and Industrial Strategy (previously called Department of Trade and Industry), usually via a Professional Body such as The Institute of Chartered Accountants or Association of Chartered Certified Accountants, or the Insolvency Practitioners Association, to take responsibility for dealing with the affairs of people and companies which become insolvent. It is a criminal offence to act as an IP unless properly qualified.
It takes many years to qualify and with the constantly changing legislation it is important that IPs keep up with the law and best practice. Consequently IPs have to undergo rigorous continuing professional development and training and are monitored and inspected at regular intervals by their Regulators.
When formally appointed as an Office-holder an IP is normally paid from the assets which come under his control. It is necessary therefore that the basis and amount of their fees are also subject to regulation and there is a Best Practice Guidance Statement called Statement of Insolvency Practice 9 (SIP9) which sets out a Creditor’s Guide to Office-holders’ fees. This Guidance has been amended from time to time.
As stated elsewhere on this web-site, however, we will give a free consultation, without any obligation, to anyone who has a debt problem either personally or through their business or company. If that consultation results in our being asked to carry out any work then we can discuss that with you and agree the basis on which any fees might be payable.
Jeremy Knight & Co Charge-out Rates
The charge-out rates of staff within the firm range from £60-90 for junior staff, £75-140 for senior administrators, £140-215 for managers and £215-290 per hour for principal time, depending upon experience and qualifications and the degree of complexity and responsibility of the work carried out. Time is charged in 6 minute units.
Where the fee is charged on a percentage basis the office holder should provide details of any work which has been or is intended to be contracted out which would normally be undertaken directly by an insolvency practitioner or his staff.
In certain circumstances it may be possible to agree a fixed fee or a fixed cap on fees prior to work being carried out.
Jeremy Knight & Co Disbursements
The firm shall be entitled to recover actual out of pocket disbursements and expenses, which are described as Category 1 disbursements. In addition storage of records will be charged at the rate of £1.50 per month plus VAT per standard storage box. The firm will be entitled to charge the actual costs of postage together with a stationery and copying charge of 10p per sheet plus VAT. These disbursements are described as Category 2 disbursements. Travelling expenses may either be category 1 or 2 depending upon the circumstances of the expense. Motor vehicle mileage is charged at 45p per mile.