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News - 30 April 2014

Increase in court fees in England and Wales

The Ministry of Justice has announced an increase in court fees in England and Wales which came into effect on 22nd April 2014 and includes court fees for insolvency and small claims.

Tonmoy Kumar, Manager of the Accounts Department of ABDS comments:
“The fee payable for a petition for bankruptcy presented by debtors has increased by £5 to £180 and the fee for a petition presented by creditors is now £280, an increase of £60. The fee payable for making a claim of between £3,000 and £5,000 has increased from £120 to £205.

For many years, users have been charged fees to access the civil court system, which includes all civil, family and probate jurisdictions, as well as the Court of Protection and the Court of Appeal (Civil Division).

The power to charge fees in the civil court system of England and Wales is set out in a number of pieces of legislation, including the Courts Act 2003 and the Mental Capacity Act 2005. When setting fees in the civil court system, the Lord Chancellor is required to have regard to the principle that access to justice must not be denied.

In recent years, the government’s policy has been to set fees on the basis of full cost recovery: that is, the use of fee income to recover the full cost of the court system, minus the cost of the remissions system (fee waivers). However, until now, the courts have been operating at less than full cost recovery, which has diverted resources from other areas of operations.

TK continues:
“At the same time, the government has made reducing the fiscal deficit a top priority, in order to set the economy on course for growth. Under the terms of its Spending Review settlement, the Ministry of Justice is required to reduce its annual spending by over £2.5 billion by 2014/15. The courts, and those who use them, must make a contribution to reducing public spending.”

If you need any help and advice on Budgets, Cash Flow Forecasts and Management Accounts, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW to discuss how ABDS can help in all your financial planning.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

Brilliant with numbers   
Great with people  
Clear and precise with advice
Timely and cost effective 
In touch with issues that face our clients
Mindful of our client’s long term strategic goals

Helping Your Business is Our Business

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