The Insolvency Service is planning to change fees for creditors who want to wind companies up, increasing the overall fee by £2,480.
This Official Receiver’s fee will increase by £2,500 when a company is closed down in the public interest.
In addition, the current fee system will be replaced by a general fee across all insolvency cases, starting at the flat fee of £6,000. It will help stakeholders to estimate costs on insolvency estates as currently it uses a percentage system charged on asset realisations (which could result in up to £80,000 worth of fees).
It’s been suggested that in larger cases, creditors will benefit most from this change in the long run as money won’t be taken up by the percentage fee, freeing up more for creditors.
However in smaller cases, creditors are more likely to pay higher fees to the Official Receiver as they have cost less that the new flat fee of £6,000.
These fee changes are due to take effect from 21st July 2016.