Administration cost calculator
There is no set price for a company administration. The Insolvency Rules decide how an administrator's fee is fixed and who approves it, not how much it is, so the real figure comes from the practitioner's written quote. The only third-party costs with a published price are the £352 court fee if you petition for an administration order and £96.55 plus VAT for each Gazette notice. Enter the figures from your quote below to see the total, the VAT and what is left for creditors.
Add up the cost of an administration
That is 38.1% of the £100,000.00 the administration expects to realise, before VAT, leaving £54,284.14 for the company's creditors. If the company can reclaim the VAT, £61,903.45 would be left.
Who approves the fee: with nothing expected for unsecured creditors beyond the prescribed part, the secured creditors fix the fee basis, plus a decision of the preferential creditors if they are to be paid (rule 18.18). Unpaid pre-administration costs need approval too (rule 3.52).
Worked example: the starting figures are illustrative, not typical fees. Replace them with the numbers in your practitioner's quote and estimated outcome statement. How it adds up: the fee (or percentage of realisations), pre-administration costs, other expenses and £96.55 per Gazette notice, plus VAT at 20% on those, plus the £352 court fee on the court route. It charges VAT on every expense you enter, so if some carry no VAT (the quote should say which), the true total is a little lower. It does not model the order in which creditors are paid.
Sources: EX50 court fees, Gazette price list, Insolvency Rules 2016 r18.16 and r18.18, checked 23 September 2026.
Worked example in full
The same illustrative case as the calculator's starting figures: an out-of-court appointment, a set fee of £25,000, £5,000 of pre-administration costs, £8,000 of other expenses, one Gazette notice and £100,000 expected from selling the business and assets.
| Item | Amount |
|---|---|
| Administrator's fee (set amount) | £25,000.00 |
| Pre-administration costs | £5,000.00 |
| Legal, agents' and other expenses | £8,000.00 |
| Gazette notice of appointment (1 notice) | £96.55 |
| Court petition fee (out-of-court route, so none) | £0.00 |
| Total before VAT | £38,096.55 |
| VAT at 20% on the fee, costs, expenses and Gazette notice | £7,619.31 |
| Total including VAT | £45,715.86 |
| Left from £100,000 of realisations for creditors | £54,284.14 |
Costs before VAT come to 38.1% of realisations in this example. That percentage is a product of the made-up inputs, not a benchmark. A small case with few assets can see costs take most of what is realised, which is why it matters to see the estimated outcome, not just the fee.
The costs with a published price
| Cost | Amount | When it applies | Source |
|---|---|---|---|
| Court fee: petition for an administration order | £352 | Court route only. The out-of-court route (appointment by the directors, the company or a floating charge holder) does not involve a petition, so this fee does not apply there. Ask whether the quote includes any other court filing costs. | EX50 civil court fees, gov.uk (updated 13 July 2026) |
| Gazette notice, single company, by webform or template | £96.55 + VAT | The administrator must gazette the notice of appointment (rule 3.27). Other formats cost £131.70 + VAT. | The Gazette price list (2026) |
| VAT | 20% | Standard rate, added to the practitioner's fee, costs and most expenses. Whether the company can reclaim it depends on its VAT position. | VAT rates, gov.uk |
How the administrator's fee is fixed
Rule 18.16 of the Insolvency (England and Wales) Rules 2016 allows four approaches. Whoever fixes the fee must take into account the complexity of the case, any exceptional responsibility, how effectively the administrator is doing the job, and the value and nature of the property involved.
| Basis | What it means | What to check |
|---|---|---|
| Percentage of realisations | A percentage of the value of the property the administrator deals with. | Fee rises and falls with what is realised. Check what the percentage is applied to. |
| Time costs | Time properly given by the administrator and their staff, at their charge-out rates. | You must be sent a fees estimate and details of likely expenses before the basis is fixed (rule 18.16(4)). |
| Set amount | A fixed sum agreed in advance. | The easiest to compare. Check exactly which work it covers and what is charged on top. |
| A mix | Different bases for different parts of the work, for example a set amount for the sale and time costs for investigations. | Allowed by rule 18.16. Ask for each part to be priced separately. |
Who approves the fee
The fee is not simply agreed between the directors and the administrator. Rule 18.18 gives the decision to creditors, and which creditors depends on what the administrator's proposals expect them to receive.
| What the proposals say | Who fixes the fee basis |
|---|---|
| The proposals expect a dividend to unsecured creditors (beyond the prescribed part) | The creditors' committee; if there is none, or it does not decide, a decision of the creditors by a decision procedure. |
| The proposals say there will be nothing for unsecured creditors other than the prescribed part (a paragraph 52(1)(b) statement) | The secured creditors' consent, plus a decision of the preferential creditors where they are to be paid. |
Costs that are easy to miss
Trading costs. If the administrator keeps the business running while it is sold, wages, rent and suppliers for that period are expenses of the administration, and when the appointment ends, sums due under contracts the administrator entered into rank ahead of the administrator's own fee and expenses (Schedule B1 paragraph 99(4)).
A connected-party sale. Selling all or a substantial part of the business to someone connected with the company within 8 weeks of entering administration needs creditor approval or a qualifying report from an independent evaluator (Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021). Ask who pays for that report. More in our pre-pack administration guide.
Extensions. The appointment ends after one year unless extended. A case that runs longer costs more on a time-costs basis.
Security. The administrator must have security (a bond) in place, and its cost is an expense of the administration (rule 3.51).
Before you instruct anyone
Get the quote in writing, with the fee basis, an estimate of expenses and an estimated outcome statement showing what creditors are likely to receive. Ask what happens if realisations fall short. Then compare the route itself: our CVL vs administration vs strike off chooser and administration vs liquidation set out when each fits, and the liquidation cost calculator covers the cheaper closure route. For how the procedure works, see company administration and how to choose an insolvency practitioner.
Common questions
How much does company administration cost?
There is no published fee scale for administrators. The Insolvency Rules set how the fee is fixed (a percentage of what is realised, time spent, a set amount, or a mix) and who approves it, not how much it is. The only third-party costs with a published price are the £352 court fee if you petition for an administration order, and £96.55 plus VAT for each Gazette notice placed by webform. Everything else comes from the practitioner's written quote, which is what this calculator adds up.
Who pays for an administration?
The administrator's fee and expenses are paid out of the company's property, and rank ahead of any floating charge (Insolvency Act 1986, Schedule B1 paragraph 99). They come off what the administration realises before creditors under a floating charge, preferential creditors and unsecured creditors are paid. If realisations will not cover the costs, ask in writing how the gap will be met before anything is signed.
Is administration more expensive than liquidation?
It usually involves more work, because the administrator may trade the business, market it for sale and report to creditors on proposals, so the fee tends to be higher than for a straightforward CVL. Compare like with like: put both written quotes through this tool and our liquidation cost calculator, and weigh the cost against what each route is likely to return to creditors.
What are pre-administration costs?
Fees and expenses incurred before the company entered administration, for work done with a view to it entering administration, such as preparing the appointment or negotiating a pre-pack sale. Unpaid pre-administration costs need separate approval, by the creditors' committee or a creditors' decision, or in some cases by secured and preferential creditors (Insolvency Rules 2016, rule 3.52).
How long does administration last, and does that change the cost?
An administrator's appointment ends automatically after one year unless it is extended, by the court or, for up to one year, by creditor consent (Schedule B1 paragraph 76). An extension means more time and, on a time-costs basis, more fee. Ask whether the quote assumes the case closes within the first year.
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