OUR CHARGES POLICY:
To provide complete transparency in our charges for the cost effective, value for money services we offer
MEMBERS VOLUNTARY LIQUIDATIONS - MVLs
WHY STERLING FORD?
Since 1990 we have acted for a large number of different sized estates: from family owned and single member companies, with gross asset values as small as £50,000 to in excess of £100m; for private clients wanting to take advantage of entrepreneur's relief, whether as part of a retirement strategy, a change in career direction or an exit from an
investment, to large groups in media, property, shipping, leasing, to professional practices in accounting and legal services, requiring a tax driven restructuring
solution; in implementing complex in specie distributions whatever the asset classes held, including, but not limited to: real estate, intellectual property, music and
publishing rights, investment portfolios, whether held in the UK or in another jurisdiction.
FIXED FEES AND DISBURSEMENT PACKAGE
[With effect from 1st July 2019]:
The Quoted Liquidation Fee shall include:
(a)Basic Fee - covering basic administration [preparation of forms including Declaration of Solvency, notices, proxy forms and short notice waivers, minutes, resolutions, etc for placing the company in members' voluntary liquidation, appointing the liquidator, giving/advertising Notice of: the liquidation, the appointment and of any claims for proving; drawing up Deed of Indemnity, discharging any outstanding and member approved accountant's fee, obtaining tax clearance for post-liquidation period, bringing liquidation to a conclusion within 12 months by giving Notice of final account and issuing final report, all other statutory compliance including all notices and returns to Companies House- includes ONE interim and ONE final distribution in cash and/or in specie, together with preparation of distribution statement(s) and up to 3 payments [excluding both distributions to members and payments to Sterling Ford for the agreed fee and disbursements] made from the designated Liquidation Account to be opened in the Company's name.
The Quoted Liquidation Fee does not incude any of the following, which if applicable, shall be charged as specified:
(b) Creditors' [trade/expense/other] claims - basic fee per creditor covers receiving and entering claim on IP System, admitting claim, obtaining directors/members' approval of claim and discharging with statutory interest calculated up to date of payment - £150 plus VAT - this does not include any time spent in dealing with any disputed claims, which would be subject to normal charge out rates - details of which will be supplied if applicable
(c) Distributions (Cash) - per additional distribution including preparation of distribution statement- £150 plus VAT for up to 2 members, £200 plus VAT for 3 - 4 members and thereafter £50 per additional member
(d) Distributions (in specie) - per additional distribution including preparation of distribution statement - £150 plus VAT
(e) Normal charge out rates [current schedule available on request] will apply for time spent on anything not covered/priced above or otherwise specified herein or agreed, such as, if applicable, obtaining: a transfer of funds from the Company's pre-liquidation bank account(s) where such account(s) have become frozen due to the director(s) not having arranged to transfer the funds held as referred to in section 2C below- charges to apply; £75 plus VAT per letter/email/telephone call to the bank concerned to obtain a transfer of funds and closure of the account; VAT deregistration [fixed fee of £100 plus VAT], ceasing any PAYE scheme, filing any remaining returns for VAT, PAYE and CT and any other pre-liquidation tax clearance work, recovering VAT in liquidation [at £5 plus VAT per VAT 427 completed and filed], post liquidation accounting for tax on interest received [at £65 plus VAT per letter or if required, at £100 plus VAT per tax return completed and filed as specified in section 2.D.(c) herein], annual reporting and filing compliance at a minimum fee of £450 plus VAT, where liquidation cannot be concluded within 12 months, due to, for example, a tax or VAT enquiry or an unresolved s455 CTA 2010 issue, or a significant delay by the Company's directors/accountants to file accounts/tax returns for a pre-liquidation accounting period in the first 12 months of the liquidation, formal assignments/transfers of assets for which minimum fees from £350 plus VAT shall apply
(f) Transaction and bank charges [in addition to any bank charges that may be levied by Metro Bank Plc] of £65 plus VAT per additional transaction, excluding both distributions to members and payments to Sterling Ford, [where 4 or more payments are required to be made from the designated Liquidation Account or for any additional instructions received in relation to balances held in interest bearing Notice accounts as specified in section 2.D.(a) below] and £75 plus VAT to open any additional liquidation accounts required in non-sterling [GBP] currencies
Where expenses are to be incurred in respect of the solvent estate they will be recharged. Such expenses can be divided
into two categories.
This heading covers expenses where Sterling Ford has met a specific cost in respect of the solvent estate where
payment has been made to a third party. Such expenses may include items such as [statutory] advertising, couriers, travel (by public
transport), searches at Companies House, land registry searches, fees in respect of swearing legal documents, external printing costs
etc. In each case the recharge will be reimbursement of a specific expense to be incurred. Where applicable, disbursements will be subject to
VAT at the prevailing rate.
For single/three member MVLs: Category 1 Disbursements are as follows:
Statutory Advertising - £237.00 plus VAT (comprises 3 insertions for advertising: the resolutions, appointment and notice to prove)
Insurance/ Bonding premium [no VAT] subject to scale based on value of assets comprised in liquidation - under Insolvency Law all estates, whether solvent or insolvent, must be bonded by the insolvency practitioner concerned:
Source: AUA Insolvency Risk Services Limited - Table C Sterling Ford - 1st March 2019
Additionally the firm recharges expenses for example postage, stationery, photocopying charges, telephone and
fax costs, which cannot be economically recorded in respect of an each specific case. Such expenses, which are apportioned to cases,
require the approval of the members before they can be drawn, and these are known as category 2
disbursements. The policy of Sterling Ford, effective from 1st January 2003, is to recharge any expense which is specific to the case.
Sterling Ford's Category 2 disbursements are capped at £50 plus VAT for single/three member MVLs.
|Band of Asset value||Premium|
|£0 to £499||£15|
|£500 to £5,000||£22|
|£5,001 to £10,000||£22|
|£10,001 to £25,000||£40|
|£25,001 to £50,000||£93|
|£50,001 to £100,000||£138|
|£100,001 to £250,000||£255|
|£250,001 to £500,000||£360|
|£500,001 to £1,000,000||£515|
|£1,000,001 to £2,000,000||£760|
|£2,000,001 to £3,500,000||£910|
|£3,500,001 to £5,000,000||£1,365|