Key information on fees & disbursements

Charge-out rates

GradeCharge-out rate (£ per hour)September 15
Partner - appointment taker£350£375
Senior Manager£200£220
Manager£140£150
Supervisor / Senior Administrator£125£130
Case Administrator£95£98
Cashier£95£98
Support Staff£50£65

Time costs are calculated using 6-minute updates.

Time spent by support and secretarial staff for carrying out shorter tasks, such as typing or dealing with post, is not charged to cases but is carried as an overhead of the firm. Only where a significant amount of time is spent at one time on a case is a charge made for support staff.

Any potential voluntary arrangement or Trust Deed fees would be on a Fixed Fee basis in respect of work done at the pre-appointment stage and on a percentage basis once the solution was formally confirmed.

 

Expenses

Expenses are amounts properly payable by the office holder from the estate including but not limited to realisation costs such as agent fees, tax liabilities, solicitors and claims management companies. Any expenses not disclosed on the estimated outcome statement will be disclosed in the annual report to creditors.

 

Disbursements policy

The costs charged by suppliers are reviewed at least annually by the Pinnacle Board.

In accordance with Statement of Insolvency Practice 9 (SIP9) the basis of disbursement allocation in respect of disbursements incurred by the Office Holder in connection with the administration of the estate must be fully disclosed to creditors. Disbursements are categorised as either Category 1 or Category 2.

Category 1 – expenses are directly referable to an invoice from a third party. These disbursements are recoverable in full from the estate without the prior approval of creditors either by a direct payment from the estate or, where the firm has made payment on behalf of the estate, by a recharge of the amount invoiced by the third party. Examples of category 1 disbursements are post, couriers and specific bond insurance. An itemised breakdown of the estimated disbursements will be included at Appendix C of the Proposal. A schedule of disbursements recovered and those incurred but not currently recovered is published on the website.

Category 2 – expenses incurred by the firm are not recharged to the estate.

DisbursementCostThird party providerFrequency of disbursementNotes
AiB Advertising FeeCharged at cost - £35 - for the advertisement of a Trust Deed within the Register of Insolvencies.AiBOnce (unless re-advertised)1
AiB Registration FeeCharged at cost - £36 - for the registration of the Trust Deed with the AiB.AiBOnce
AiB Supervision feeCharged at cost - £100 - for the supervision of a Trustee in a Protected Trust Deed.AiBAnnually
AiB Sequestration feeVarious fees - charged at cost
Assignation of salary and other enforcementCharged at costStirling Park LLPN/A
Bank charges Monthly cost per case determined by bank.Barclays Bank PlcAnnually to 2016, quarterly from 20172
Books of Council & SessionFor the formal entering of a Protected Trust Deed in the Registers of Scotland - charged at cost - £10Registers of ScotlandOnce after protection
BordereauCharged annually and based on level of anticipated total asset realisations. Invoices received and paid monthly. Enhanced bond to cover non-appointment taking staff of all levels for an additional £1 per annum per case.Kingsbridge Risk Solutions LtdAnnually3
Claims review feeWhere the client meets the necessary criteria, a review will be undertaken into any potential compensation for the mis-selling of but not limited to Payment Protection Insurance, Packaged Bank Accounts and pay day loans or any other potential mis-sold productsFTR (from 1 December 2017)Once after approval / protection4
Courier£120 - for the collection of proposal/Trust Deed and other associated documents from the debtor throughout the period of the arrangementFTR (from 1 December 2017)Once after approval / protection
Credit searchUp to £28 plus VAT depending on the type of search requestedCast Light LimitedAs required
Creditor guarantee cover policyPolicy to be taken out in respect of any debtor up to the age of 75 (no exclusions based on medical, geographical or stress factors) and will guarantee the last reported dividend to creditors in the event of death or diagnosed terminal illness of the debtor of their partner and will allow the arrangement to be concluded. Based on contributions up to £250 per month and 12 months' contributions in lieu of equity over £5,000. The office holder's fee and disbursements are not covered by the policy. The cover is effective from the 1st contribution made by the debtor and is charge at 2% of contribution up to a maximum of £250 over the term. (Previously charged at 1.75% for September & October 2015 and 1.81% November 2014 to July 2017 due to the rise in IPT)Kingsbridge Risk Solutions LtdUpon contribution5
DTI IVA registration fee£15Insolvency ServiceOnce (once per client in the event of an interlocking IVA)
Edinburgh GazetteFor the advertisement of a Trust Deed in the Edinburgh Gazette - charged at costEdinburgh GazetteOnce pre November 2013
EquifaxCharged at cost - £2.70 - confirmation of a debtor's identity where required Charged at cost - £2.70EquifaxAs required
HPI CheckCharged at cost - £3.60 per search until February 2017, reduced to £2.73 per search after this date - finance search for motor vehiclesCAP HPIAs required
Inhibition FeesCharged for registering (£15) and releasing (£15) inhibitions against clients at the Registers of ScotlandRegisters of ScotlandOnce
Property valuations, equity reviews and IVA month 54 obligations Charged for registering (£15) and releasing (£15) inhibitions against clients at the Registers of ScotlandThe Select Partnership, DM Hall, NSMGOnce4 & 6
IVA and TD software chargesThe cost of software that is directly attributable to the case will be recharged. Set up fee of £180 plus £60 annual charge payable in advance; 50% discount in the final year. From February 2017, 50% discount in the fifth year and thereafter. If the debtor has complied with all their obligations within 3 months of their final payment, no charge will be made for software in the administration period.FTR (from 1 December 2017)Annually
Land Registry / Searches Different services charged at prevailing rateLand RegistryAs required
Legal FeesAs requiredVariousAs agreed
PPI 3rd party feeRealisation costs vary depending on which claims management company has been instructed whether by FTR or by the clientVariousUpon receipt of the realised funds. Third party feed on taken off balance outcomes are subject to the benefit to creditors in dividend enhancement.4 & 7
Storage, file management, scanning and destruction£36 per caseFTR (from 1 December 2017)Once

Notes:

  1. Accountant in Bankruptcy (‘AiB’).
  2. Negotiations regarding free banking on the client hub account are ongoing and although original indications were that this may be achieved by Q3 2017, the monthly charge will continue until the end of year until resolved.
  3. Enhanced bond to cover non-appointment taking staff of all levels for an additional £1 per annum per case. Non-recoverable bond paid by Pinnacle to cover returned creditor payments on closed cases up to a total of £1,000,000. Kingsbridge Risk Solutions Limited is an independent 3rd party with no associations or connections with Pinnacle other than as their insurance broker.
  4. Chapel Outsourcing Limited, an independent third-party company, has been engaged to provide a number of the services that could not be carried out by the office holder, to the insolvent estates, as detailed above. They are contractually obliged to deliver best value and service. To achieve this they are contractually entitled to outsource any element of the service at their discretion. The full service must be delivered direct to the insolvent estate by Chapel Outsourcing Limited.
  5. Policy to be taken out in respect of any debtor up to the age of 75 (no exclusions based on medical, geographical or stress factors) and will guarantee the last reported dividend to creditors in the event of death or diagnosed terminal illness of the debtor of their partner and will allow the arrangement to be concluded. Based on contributions up to £250 per month and 12 months’ contributions in lieu of equity over £5,000. The office holder’s fee and disbursements are not covered by the policy. The cover is effective from the 1st contribution made by the debtor and is charge at 2% of contribution up to a maximum of £250 over the term. (Previously charged at 1.75% for September & October 2015 and 1.81% November 2014 to July 2017 due to the rise in IPT). In the event that an IVA variation meeting is still required after a claim has been settled no fee will be charged.
  6. PPI realisation costs are only paid on set off where the dividend has improved