It is alleged that a firm of accountants is charging £1,150 per hour dealing with the collapse of a Wolverhampton construction firm . The government has stepped in and it seems the tax payer will be footing the bill.
Can this be good governance and can it be ethical charging such a huge hourly rate.?
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Not yet - but I can learn.
Anything you don't know just ask on insolvencyweb co uk,
just remember to be anonymous.
What if they have fifteen accountants working on it? That's a really cheap rate then.
No - it'll be £1150 apiece.
Plus expenses.
You can guarantee that all public sector bodies have the very best procurement and negotiating teams taxpayers money can buy. It would have been £1,500+ elsewhere.
Just had a £20k insolvency fee analysis in this morning re an ex tenant,we are a creditor-though not very much involved.
Before fees the worthy practitioner has raked in £80k of receipts with circa £20k of costs, so after his/her fees it looks like there may be circa £40k to pay to us creditors; Yippee.
Without digging out the exact paperwork (I passed it on for filling) it was a circa £20k fee and 84.5 hours of work from various staff, so an average of circa £236 per hour.
£1,000 seems a tad high, care to post a link to the News story where it was reported?
Thanks.
I see it was the specialist re pensions that reached the heady heights rather than those merely dealing with the "Wolverhampton Construction Company"
At these rates they must be getting into the realms of the £100 cup of coffee, hate to think what the banal exchange of greetings will be costing (How's the wife, kids, nice holiday etc)
DJKL, you're lucky! The last few (small) liquidations I've seen have been along the lines of
Asset realisations £7k
Less: liquidator fees (£7k)
Balance for unsecured creditors £0
I knew I should've trained as an IP ;-)
They do tend usually to be more like your figures, however once assets drop far enough there does not tend to be an insolvency process as nobody wants to touch it in the first place.
I did some company liquidation work during my 1980s apprenticeship, two afternoons of preparing six monthly reports. I was given a stack of files and told to merely copy the previous six month report for each one, apparently nothing had happened. I am still none the wiser re the reports, their purpose, or if insolvency work ever actually makes any progress.
Katie Price's liquidators charge £300 an hour.
While companies go bust (excuse the pun) every day, she has a hugely overdrawn Director loan account and has not paid her accountant or HMRC.
It is certainly a jungle out there, in fact it might be thought to be Insania.
(Having a (then) teenage daughter brought a lot more popular media into my world than was probably advisable)