How much does a CVL cost?

A simple CVL meets all of the following conditions:

• ›Fewer than 10 creditors.
• ›No employees (or director-only employee).
• ›No significant assets requiring realisation.
• ›Cooperative directors with books and records in good order.
• ›No HMRC enforcement complications — no Personal Liability Notice, no security demand, no Fraud Investigation Service involvement.
• ›No investigation issues that prolong the procedure.

Approximately 30–40% of SME CVLs meet simple-case scope. The remainder require banded pricing reflecting the additional work involved.

The standard CVL scope of work includes:

• ›Pre-appointment investigation and director advice.
• ›Convening and conducting the section 100 creditors' decision procedure (deemed consent or virtual meeting per SIP 6).
• ›Statement of Affairs preparation and signature.
• ›Notice and reporting to creditors per the Insolvency (England and Wales) Rules 2016.
• ›Asset realisation (where simple — small bank balances, modest stock).
• ›Statutory filings with Companies House and HMRC throughout the procedure.
• ›Closing the case, final report to creditors, and dissolution.

• ›VAT — charged at 20% on top of the IP fee.
• ›Disbursements — third-party costs such as Companies House fees, statutory advertising (Gazette plus local paper), bank charges, search fees. Typical SME disbursements: £500–£1,500.
• ›Investigation work beyond standard — if a section 218 director conduct review identifies matters requiring deeper investigation, additional fees may apply. The IP will advise upfront if this is likely.
• ›Litigation — if antecedent transaction claims are pursued (preferences, transactions at undervalue, wrongful trading recoveries), a separate fee arrangement applies.

Five factors drive fees above the simple-case scope:

1. Creditor count

More than 10 creditors increases reporting and communication overhead. Each additional 10 creditors adds approximately £500–£1,000.

2. Employees

Employee redundancy claims, P45 issuance, RP1 forms to the Redundancy Payments Service, TUPE considerations. Employee cases typically add £1,000–£3,000.

3. Asset realisation

Meaningful stock, equipment, property, or debtor book requires marketing, sale process, and proceeds distribution. Realisation work typically adds £1,500–£5,000+.

4. HMRC enforcement complications

Personal Liability Notices, security demands, Fraud Investigation Service involvement, or contested distraint each add procedural complexity. Typically £1,000–£3,000 each. See the Personal Liability Notice spoke and the HMRC security demand spoke for the underlying procedures.

5. Investigation requirements

Misfeasance suspicions, director loan account complications, antecedent transaction analysis, or pending litigation each add investigation time. Variable — £1,500–£10,000+ depending on scope.

Statement of Insolvency Practice 9 (SIP 9) governs how UK insolvency practitioners charge fees. SIP 9 requires:

• ›Fee-basis disclosure upfront — fixed fee, percentage of realisations, or time costs. Simple CVL uses fixed fee; complex cases typically use time costs.
• ›Estimated outcome statement for creditors — showing what creditors should expect.
• ›Hourly rate disclosure for time-costs cases — matching the rates published on our resources page.
• ›Regular fee approval — creditor approval for time-costs fees, typically through written resolution or committee.

The engagement letter we provide before commencing any CVL sets out the fee basis in writing — so directors and creditors know exactly what to expect.

Online IP firm market: simple CVL fees published by visible online firms typically range £2,500–£3,500 + VAT for simple cases. IQ Insolvency's £2,500 entry point matches the lower end of this market.

Mid-market firms (Begbies Traynor, Leonard Curtis, FRP) typically charge higher fees (£5,000+) reflecting more complex scope and brand premium. Boutique IP firm market (IQ Insolvency and similar): focused on quality and continuity rather than volume.

If you want to know what a CVL would cost for your specific company, the Get a Quote calculator provides an indicative figure based on the information you provide. The calculator takes about 3 minutes to complete and you receive the quote by email within 1 working day.

Alternatively, book a free initial conversation with Simon at the Contact page or call 020 8153 1270.