Liquidation Costs
The cost of liquidation depends on the complexity of the company’s business, the number of creditors, the quality of accounting records, and whether there are assets to realise. Our minimum charge is £2,450 plus VAT.
Where the company has assets, liquidation fees are often paid from those realisations. If the company has limited assets, we will explain the likely funding options clearly before you proceed.
What does the liquidation fee cover?
Liquidation is a regulated legal process carried out by a licensed insolvency practitioner. Fees typically cover the professional work required to:
- Review the company’s position and advise on the correct procedure (CVL, MVL, Administration or alternatives)
- Prepare statutory paperwork and resolutions
- Appoint the liquidator and assume control of the company
- Notify creditors and manage claims
- Realise and distribute assets in line with insolvency law
- Deal with HMRC where relevant and manage correspondence
- Conduct required investigations and file statutory reports
- Complete final closure and dissolution steps
What affects the cost?
The final cost depends on the amount of work involved. Common factors include:
- Number of creditors and complexity of claims
- Quality of records (bookkeeping, VAT/PAYE, management accounts)
- Assets to be valued/sold (stock, vehicles, machinery, property, debtors)
- Employee matters including redundancies and claims
- Director loans, overdrawn accounts or transactions needing review
- Time pressure (e.g., imminent winding-up petition or enforcement action)
- Multiple sites, leases, contracts, or finance agreements
How are liquidation fees paid?
Fees are typically funded in one of the following ways (depending on your company’s circumstances):
- From company assets — if there are assets to realise, fees can often be paid from proceeds
- Upfront director contribution — common where the company has minimal assets
- Combination — part upfront with the balance funded from realisations
We will explain the expected route and costs before any appointment is made.
Is VAT payable?
Yes — liquidation services are subject to VAT in the usual way. Where VAT applies, it will be shown clearly on your quotation.
Are there any additional costs?
In addition to professional fees, there may be disbursements and third-party costs depending on the case. Examples can include: statutory advertising, insurance, specialist valuations, storage, or legal advice where required. We highlight any likely extras up front.
Fixed-fee and transparent pricing
We aim to provide clear, transparent pricing from the outset. After a short review of your company’s situation, we will outline: the recommended procedure, likely timeline, and a clear quotation so you can make an informed decision.
Speak to Insolvency Direct Ltd
If you are unsure which process you need — or want a clear view of costs — speak to our team in confidence. We will explain your options and provide a quotation tailored to your company’s circumstances.
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