A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
What Does an Insolvency Practitioner Cost?
Insolvency practitioner fees vary depending on the procedure, the complexity of the case, and the value of the company's assets. Here's a transparent guide to what you can expect.
Creditors' Voluntary Liquidation (CVL)
Fees typically start from £3,000 to £5,000 plus VAT. Where the company has assets, these fees are paid from the proceeds of realisation - so directors usually do not pay personally. Where there are no assets, directors often fund the fee, frequently offset by director redundancy pay.
Members' Voluntary Liquidation (MVL)
Fees typically start from £2,000 to £4,000 plus VAT, plus disbursements. Because the company is solvent, the cost is paid from the company's own funds, and is usually dwarfed by the tax savings achieved through capital treatment.
Company Administration
Administration fees are higher because of the complexity and the ongoing trading element. Fees are typically based on time costs and are agreed with creditors. Where the company has assets, fees are paid from them; where it does not, the party initiating the administration usually funds it.
Company Voluntary Arrangement (CVA)
CVA fees include an initial nominee fee for preparing the proposal (typically £3,000 to £5,000) and a supervisor's fee, often a percentage of contributions collected.
How Fees Are Agreed
In all formal insolvencies, fees must be approved by creditors. This protects directors and creditors alike. A reputable practitioner will give you a clear, written estimate before you commit.
Why a Headline Fee Isn't the Whole Story
Some firms quote a low headline fee and add charges for asset realisation, investigations, or disbursements later. Always ask for a full, written breakdown - what's included, what's charged separately, and what happens if assets realise less than expected.
Speak to a Licensed IP
We provide transparent, no-obligation fee quotes tailored to your company. Call our Manchester team for a clear, written estimate.