Last Updated: 11/08/2026
Understanding insolvency fees and how they are paid
When a business is facing financial difficulty, it is natural for directors and stakeholders to have questions about professional fees and how they are charged.
Our standard charges and pricing
At McTear Williams & Wood, we believe in being open and transparent about how insolvency fees work, how they are approved, and most importantly, who pays them. We never ask directors to put their hands in their pockets to pay our fees. Fees are usually paid from the sale proceeds of the company’s assets. We will always explain how this works in your specific circumstances before we ask you to make any commitment.
Who pays our fees?
Our fees are paid from the assets of the company rather than by the directors personally. There are some limited circumstances where personal funding may be discussed, but if that becomes necessary there are usually other options available to the Company that we will explain. Our role is to provide clear, practical advice so directors and stakeholders can understand their position and the options available to them.
Typical fee ranges
Insolvency fees vary depending on the size and complexity of the business, the type of appointment, and the work required. As a general guide:
- Straightforward creditors’ voluntary liquidations (CVLs) are typically less than £10,000.
- More complex liquidations or administrations will involve higher fees due to the additional work necessary.
- Investigation and recovery cases are usually linked to the complexity and value of the assets or claims being pursued.
Where an appointment is being considered, we will explain the likely scope of work and the basis of our fees at an early stage.
How our fees are calculated
In formal insolvency appointments, fees are normally charged on a time-cost basis, in accordance with the law and the guidelines issued by our professional body, R3. This approach ensures that:
- Work is proportionate to the work done and complexity of the case.
- Creditors only pay for necessary and justified work.
- The work is delegated to less expensive staff.
Charging and expenses recovery policies:
Our hourly charge out rates are:
| Grade | Standard rates | Complex rates |
|---|---|---|
| Director | £620 | £860 |
| Associate Director/Licensed Insolvency Practitioner | £590 | £790 |
| Associate | £560 | £730 |
| Senior Manager | £510 | £670 |
| Manager | £470 | £630 |
| Assistant Manager | £450 | £580 |
| Senior Professional | £350 | £520 |
| Administrator | £290 | £390 |
| Assistant | £220 | £220 |
| Assistant Administrator | £200 | £200 |
| Trainee | £95 | £95 |
A creditors’ guide to fees:
| For insolvencies effective until 5 April 2010 | For insolvencies effective until 31 October 2011 | For insolvencies effective from 1 November 2011 to 30 September 2015 | For insolvencies effective from 1 October 2015 | For insolvencies effective from 1 April 2021 | |
|---|---|---|---|---|---|
| A creditors' guide to administrators' fees | Download | Download | Download | Download | Download |
| A creditors' guide to bankruptcy fees | Download | Download | Download | Download | Download |
| A creditors' guide to liquidators' fees | Download | Download | Download | Download | Download |
| A creditors' guide to voluntary arrangement fees | Download | Download | Download | Download | No changes |
| A members' guide to liquidators' fees in a solvent liquidation | Download | N/A | N/A | N/A | Download |
Our fees are competitive and are typically lower than those charged by national firms offering similar services. Further information on insolvency fees can be found in the following Statement of Insolvency Practice: SIP9 on Payments to Insolvency Office Holders and their Associates
BUSINESS RESCUE & INSOLVENCY SPECIALISTS
Download your free Directors' guide
This free, easy-to-read guide is designed to help directors whose company is in financial distress. It will assist directors to navigate around insolvency issues and avoid potential pitfalls, split over ten sections this guide walks you through the matters in a logical order you are
likely to need to consider.
How fees are approved
Insolvency practitioner fees are subject to strict regulatory oversight. Depending on the type of appointment, fees are approved by creditors, a creditors’ committee or in some cases, the court. This approval process, which includes up front fee estimates, exists to ensure fees are reasonable, transparent and properly linked to the work undertaken. McTear Williams & Wood is regulated by the ICAEW, and we take our professional, ethical and regulatory obligations extremely seriously.
Talk to us before making any decisions
Every situation is different. That’s why we offer free, confidential initial discussions, with no obligation. We will explain your options clearly, including how fees would work in your specific circumstances, before any commitment is made.
How can we help - Book a free 1-2-1
If your company is struggling with unmanageable debts, decreased cashflow or concerns about about your company’s future, we can assess your situation and provide you with tailored solutions and options.
During your free initial advice meeting, we will discover a true picture of your company’s financial situation
and offer practical and expert guidance on your next steps.
Initial meetings can be held at our office or your premises and are completely confidential.
There is no charge for this meeting – charges only apply if and when terms of engagement have been agreed.
R3 Insolvency fees and the cost of regulation
Insolvency fees are subject to regular scrutiny, particularly in high-profile cases. This paper published by R3 explains how insolvency fees are charged, regulated and paid, and why fees may vary depending on the nature and complexity of a case.
Frequently asked questions
Do directors have to pay insolvency fees personally?
If you engage with us fees are usually paid from company assets or recoveries made during the insolvency process. Any rare exceptions would be discussed and agreed in advance.
What happens if the company has no assets?
If there are no assets, we will explain the available options. We will always discuss this openly so there is clarity from the outset.
Are fees agreed upfront?
Where possible, we explain the likely basis of fees and scope of work before a formal appointment. Fees are then subject to the appropriate creditor or court approval process.
Can fees change during the process?
Fees may change if the scope or complexity of the work changes. Any variations are explained clearly and remain subject to approval.
What costs are included in insolvency fees?
Fees generally reflect the professional time spent managing the appointment. Any additional costs or disbursements are also disclosed transparently.
