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NEW
FINANCIAL REGIME - FEES AND CHARGES The
new financial regime was introduced to ensure fairness, to provide
accountability and a more commercial approach. It means that The
Insolvency Service’s costs are met by those fees charged in connection
with case administration, banking, administration of FTVAs and IP
authorisation and regulation. Policy development, investigation and
enforcement costs are met by BERR. Casework
is paid for by creditors (the deposit and administration fee) and from
asset realisations (Secretary of State [SOS] fee) and, where applicable,
time and rate fee. Basically 15 fees have been reduced to two main fees – administration fee and SOS fee. Current fees and charges (from 6 April 2008)
Deposits:
Case
administration fee:
SOS
fee – 17% of all asset realisations between £2,000 and £80,000
where the insolvency order was made after 1 April 2004. In
those cases where the order was made prior to 1 April 2004, SOS fees will
not apply. Time
and rate charges – distributions etc FTVA
Nominee fee - £310 FTVA
Registration fee - £10 FTVA
Supervisor’s fee - 15% of all asset realisations. In
summary the new regime is a simpler fee structure, it balances the needs
of the debtor and creditor and it provides full cost recovery for
administration.
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