This statement of additional information provided by Hawkins Insolvency is produced in accordance with Statement of Insolvency Practice 9, dated 1 November 2011 (“SIP9”) For further information on fees charged by Insolvency Practitioners please go to the link below and navigate to SIP9 at the www.icaew.com website.
In accordance with the up to date professional guidance and published rules of best practice we have listed our firms policies in dealing with the following :
- Staff Allocation
- Professional advisors
- Charge out rates
In accordance with Insolvency Guidance Paper - Control of Cases
Staff are allocated to tasks based upon the level of skill and experience they have and depending upon the complexity of the task.
Some of the work may be sub contracted out and time charged to the estate in accordance with Statement of Insolvency Practice 9. This will always be reported in full to the creditors in reports. Payment will be made from Hawkins Insolvency and not the estate.
Due to the nature of insolvency appointments it may be necessary to instruct other professional advisors. Listed below are details of those we will usually instruct. We have also indicated alongside, the basis our fee arrangement with them, which is subject to review on a regular basis.
Name of Professional Advisor
DACBeachcroft LLP - legal advice
Willis Risk - insurance
Go - Industry Dove Bid Limited - chattel asset valuers
Edward Symmons LLP - property valuer
The Creditor Gateway
Basis of Fee Arrangement
Hourly rate and disbursements
Premium based on assets
Fixed fee of £15 per circular
Our choice is based on our perception of their experience and ability to perform this type of work, the
complexity and nature of an assignment and the basis of our fee arrangement with them.
Category 1 disbursements do not require approval by creditors. The type of disbursements that may be charged as a Category 1 disbursement to a case generally comprise of external supplies paid direct to a third party and typically comprise, case advertising, external printing, bridge tolls and other direct payments.
Any charges properly incurred by staff in connection with the administration will be re-charged to the estate and paid accordingly.
Category 2 disbursements require approval from creditors by way of a specific resolution.
These are costs which are directly referable to the appointment in question but are not payments which are made to an independent third party and may include shared or allocated costs that can be allocated to the appointment on a proper and reasonable basis such as internal room hire, document storage or business mileage.
We would advise that the following Category 2 disbursements are currently charged by Hawkins and Company:
- Stationary/Fax/Postage is charged as a one off fee of £5 per creditor
- Internal storage of working papers £5 per annum to a maximum of 10 years
- Files and Indecies are charged at £30 as a one off fee
- Internal meeting room hire is charged at £100 per hour
- Insolvency Practitioner and staff mileage is calculated at 45p per mile.
A schedule of the hourly charge-out rates, exclusive of VAT which is effective from 1 September 2012 is detailed below. Rates are subject to annual review on the 1st of January each year. It is not anticipated that rates will increase in 2013.
Other Senior Professionals
For the avoidance of doubt VAT will be charged on fees, time costs and disbursements where applicable.