Percentage basis
The new legislation allows fees to be charged on a percentage of the value of the property with which the office holder has to deal. Different percentages can be used for different assets or types of assets. Where we would like to realise any asset or type of assets on a percentage basis we will provide further information explaining why we think that this basis is appropriate and ask creditors to approve the basis.
Fixed fee
The new legislation allows fees to be charged at a set amount. Different set amounts can be used for different tasks. Where we would like to charge a set amount for a task or different set amounts for different tasks we will provide further information explaining why we think that this basis is appropriate and ask creditors to approve the basis.
All bases
The officeholder’s remuneration invoiced to the insolvent estate will be subject to VAT at the prevailing rate.
Agent’s Costs
These are charged at cost based upon the charge made by the Agent instructed, the term Agent includes solicitors, legal advisors, auctioneers, valuers, accountants, quantity surveyors, estate agents and other specialist advisors.
Client Account
It may be necessary from time to time for funds to be held in an Insolvency Client Account held by Dodd & Co prior to paying funds into the bank account (or Insolvency Services Account) of a particular case. All funds are remitted to the specific account for the case (which is interest bearing) as soon as possible in line with guidelines on the operation of a general client account.
Disbursements and Expenses
Certain costs may be incurred in relation to a case and in the first instance paid by Dodd & Co, then recharged to the case. The amount recharged is the exact amount incurred. Examples are statutory bonding, statutory advertising, land registry searches, company searches, insurance, travel and subsistence. These expenses are known as Category 1 disbursements and do not require creditors prior approval prior to being drawn from the estate.
Other costs which may be recharged to the case include for example the cost of sending out reports to creditors, if material. The costs recharged are based upon the actual cost of the materials used, or the costs which would have been incurred if that service had been sourced externally. These are known as Category 2 disbursements and a resolution to approve withdrawal of these disbursements is required.
The current levels of costs recharged are detailed below:
Any Category 2 disbursements other than those noted above will not be taken without prior approval from creditors.
Any payments to outside parties in which the office holder or this firm or any associate has an interest will only be made with the approval of creditors.
Where necessary, other staff within Dodd & Co will be used to carry out any accountancy or taxation work which is appropriate to the case. Costs will be charged by Dodd & Co staff on a time cost basis (plus VAT). A list of hourly rates for the relevant staff used in the matter will be available upon request but in general, they fall within the rates of £33 to £60 for accounts and taxation staff, £60 to £125 for accounts and taxation seniors/managers and £125 to £215 for specialist technicians including partners.
For a full guide to creditors fees, please refer to our website at http://www.doddrescue.co.uk/OurCharges.html
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