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.
How much does an insolvency practitioner cost?
Insolvency practitioner fees vary with the procedure and the complexity of the case - a simple MVL is often a fixed fee in the low thousands, a straightforward CVL commonly starts around £3,000-£6,000 plus VAT, and administrations cost more, reflecting the work of trading and selling a business.
In this guide you'll learn how IPs charge, who approves and controls their fees, what initial advice costs, and how to check that the person you're dealing with is actually licensed.
Fee models differ between firms, so it's a good idea to compare like for like - the cheapest headline number is not always the cheapest case.
What does initial insolvency advice cost?
At most reputable firms, including ours, the initial consultation is free and confidential.
That first conversation establishes whether a formal procedure is needed at all - a meaningful share of directors who call us don't need to liquidate, and leave with a plan involving time to pay arrangements, restructuring, or another route instead.
A licensed IP is professionally obliged to set out all your options, not just the ones that generate a fee.
How do insolvency practitioners charge?
Three models are common.
Fixed fees - a set amount agreed in advance, typical for MVLs and simple CVLs.
Time costs - hourly rates for the IP and their staff, used in more complex or unpredictable cases, with estimates provided and overruns requiring approval.
Percentage of realisations - a share of the assets recovered, sometimes used where recoveries are uncertain.
Disbursements - bonding, statutory advertising, filing fees - are charged in addition under any model, and VAT applies.
Who approves and controls an IP's fees?
In insolvent procedures, the IP's remuneration must be approved by creditors - the IP cannot simply set their own fee.
Fees are also subject to regulatory oversight: every licensed IP answers to a recognised professional body (our practitioners are licensed by the ICAEW), which monitors their work and handles complaints, and creditors can challenge excessive fees.
This is the crucial difference between a licensed IP and the unregulated advisers who advertise around the industry - with an IP, there is a rulebook, a regulator, and recourse.
How do I check an insolvency practitioner is licensed?
Ask for the practitioner's name and licensing body, then verify them on the Insolvency Service's public register of insolvency practitioners.
Our practitioners publish their details openly - each is named on our team page, with their ICAEW licence, and when you call, you speak to them directly.
Be cautious of firms where you can never speak to the actual IP, where the "adviser" is a salesperson passing your case on, or where fees are quoted before anyone has asked about your company - all common patterns among lead-generation brokers.
Why do fees vary so much between firms?
Genuine drivers of cost: case complexity, creditor numbers, employee claims, asset types, investigations required, and the seniority of who does the work.
Less genuine drivers: heavy advertising costs recovered through fees, referral commissions paid to brokers, and low headline prices that exclude statutory essentials.
A useful discipline when comparing quotes is to ask each firm the same four questions - what exactly is included, what could increase the fee, who will actually handle my case, and are you the licensed practitioner who will take the appointment?
Is a cheaper liquidation ever worse for directors?
It can be.
The liquidator's statutory duties - realising assets properly, investigating conduct, reporting accurately - protect directors as well as creditors, because a properly run process leaves no loose ends to resurface later.
A cut-price process that skips steps can leave directors exposed - to restored companies, revisited transactions, or personal liability questions that a thorough liquidation would have resolved cleanly at the time.
How do I get a clear quote?
Call our licensed insolvency practitioners in Manchester on 0333 023 5090. The initial conversation is free and confidential, you'll speak directly to an ICAEW-licensed IP, and any quote comes in writing with everything itemised.
InsolvencySupport.co.uk is operated by Xeinadin Corporate Recovery Limited (company no. 11415156), 100 Barbirolli Square, Manchester M2 3BD. Our insolvency practitioners are licensed and regulated by the ICAEW.
Figures given are indicative only and depend on individual circumstances. This article is intended for general information purposes only and does not constitute financial, legal, or professional advice - always obtain a written quote and take advice from a licensed insolvency practitioner.