Chargeout Rates and Expenses Policy
Appendix B – Chargeout Rates and Expenses Policy
Staff Allocation & Support Staff
An objective and practical approach is taken to each case which includes active Partner involvement from the outset. Other members of staff will be assigned on the basis of experience and specific skills to match the needs of the case. In accordance with the provisions of Statement of Insolvency Practice 9 (SIP 9), set out below are the current charge out rates per hour for the grades of staff employed within Griffins, exclusive of VAT.
| Grade of Staff | Rate from 12 January 2021 Per Hour (£) |
| Managing Partner | 475 |
| Partner | 300 – 400 |
| Manager | 200 – 300 |
| Senior Administrator | 150 – 200 |
| Administrator | 50 – 150 |
| Support | 50 |
Work undertaken is recorded in 5 minute units in an electronic time recording system. Time properly incurred on cases is charged at the hourly rate of the grade of staff undertaking the work that applies at the time the work is done. There has been no allocation of any general or overhead costs.
Time spent on casework is recording directly to the relevant case and the nature of the work undertaken is recorded at that time. The work is recorded under the following categories:
- administration (including statutory reporting)
- realisation of assets
- creditors (claims and distribution)
- investigations
- trading (where applicable)
- appointment specific matters (where applicable)
Chargeout rates may be subject to periodic increase and this schedule will be updated accordingly.
Subcontractors
Details and the cost of any work which has been or is intended to be sub-contracted out that could otherwise by carried out by the office holder or his staff will be provided in any report which incorporates a request for approval of the basis upon which remuneration may be charged.
Direct Expenses (Category 1 Disbursements)
Category 1 disbursements will generally comprise external supplies of incidental services specifically identifiable to the case. Where these have initially been paid by Strong-Anderson and then recharged to the case, approval from creditors is not required. The amount recharged is the exact amount incurred. Category 1 disbursements can be drawn without prior approval, although an office holder should be prepared to disclose information about them in the same way as any other expenses.
| Category 1 Disbursements | Basis of Charge |
| Indemnity Bond | At actual cost incurred |
| Statutory Advertisement | At actual cost incurred |
| Insurance of assets | At actual cost incurred |
| Travel (other than mileage) | At actual cost incurred |
| External Room Hire | At actual cost incurred |
| Record Listing, Storage & Retrieval | At actual cost incurred |
| Postage | At actual cost incurred |
| Virtual Meeting Platform | At actual cost incurred |
Examples of Category 1 disbursements include postage, case advertising, specific bond insurance, company search fees, case management software system, invoiced travel and properly reimbursed expenses incurred by personnel in connection with the case. Also included will be services specific to the case where these cannot practically be provided internally such as printing, room hire and document storage.
Any payments made to individuals of businesses with whom the practice or an individual within the practice has a business or personal relationship will be disclosed to creditors and an appropriate resolution for approval sought.
Indirect Expenses (Category 2 Disbursements)
Category 2 disbursements are expenses that are directly referable to the appointment in question but which are not to an independent third party and may include shared or allocated costs that can be apportioned to the appointment on a proper and reasonable basis.
Specific approval for Category 2 Disbursements is required from creditors before they can be paid.
It is Strong Andersons policy not to charge Category 2 Disbursements.
Professional Advisors
Details of any professional advisor(s) used will be given in reports to creditors. The fee arrangement for each will be disclosed in reports to creditors and these will be reviewed on a regular basis, together with the recovery or relevant disbursements. The choice of professional advisors is based around a number of factors including, but not restricted to, their expertise in a particular field, the complexity or otherwise of the assignment and their geographic location.
VAT
With the exception of Individual Voluntary Arrangements and Company Voluntary Arrangements which are VAT exempt, the office holders’ remuneration and disbursements invoiced to the insolvency estate will be subject to VAT at the prevailing rate.
Creditors’ Rights
Information about Creditors’ rights can be obtained by visiting the creditors’ information micro-site published by the Association of Business Recovery Professionals (R3) at http://www.creditorinsolvencyguide.co.uk/. Details about how an office holder’s fees may be approved for each case type and challenged are available in a series of guides issued with SIP 9 and can be accessed a
Alternatively hard copies of these documents may be requested free of charge from Strong-Andersons, 44 Plover Road, Leighton Buzzard, Bedfordshire. LU7 4AW.