What will it cost?
On average £2,000.00 to £5,000.00 plus VAT for the pre-appointment costs.
Upwards of £10,000.00 plus VAT for the post appointment costs.
Note that the VAT is usually recoverable on the post-administration payments if the company was VAT registered.
Most IPs will offer an initial meeting for free and a small fixed fee for additional meetings and time spent in dealing with matters prior to the administration taking place.
The administration application is produced and lodged in court by a specialist solicitor. The court and legal costs are on average circa £2,000.00 plus VAT.
Post administration, the administrators costs are approved by the creditors.
They are most commonly on a time spent basis, so the more work there is to do, the more it will cost. IP costs vary from firm to firm.
If there are any fixed assets to be dealt with where there are secured creditors in place, such as property with mortgages on then the chargeholder will agree the administrators costs in dealing with the sale of the asset.
Administration procedures are generally expensive because the administrator takes control of the company’s affairs and usually trades the business, which will be time-consuming.