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08146793_MzEyMzAwODIzMGFkaXF6a2N4_SoA.txt
Form 4.20
Rule 4.34-CVL The Insolvency Act 1986
Statement of Company’s S 9 5 /9 9Q
Affairs e
Pursuant to Section 95/99 of the
Insolvency Act 1986
For official use
To the Registrar of Companies
Company Number
08146793
Name of Company
(a) Insert full (a) 2 AFFINITY LIMITED
name of Company
(b) Insert full I, (b) Raymond Stuart Claughton
name(s) and 3 Merchant’s Quay
address(es) Ashley Lane
Shipley BD17 7DB
(c) Insert date _— the liquidator of the above named company attach a statement of the
company’s affairs as at (ec) 1° May 2015
Signed Jc _— Date 1 May 2015
For Official Use
Presenter’s name, Rushtons Insolvency Liquidation Section Post Room
address and reference Limited
(if any) 3 Merchant’s Quay
, Ashley Lane
' . >
| Shipley <
BD17 7DB 5 | | | ll | / |
< *A46JWUEA*
RSC/RJ/LB Att 02/05/2015 #189
j COMPANIES HOUSE
Rule 4 34-CVL
Form 4 19
Statement of Affairs
(TITLE)
Statement as to affairs of 2 Affinity Limited
on the 1 May 2015 being a date not more than 14 days before the
date of the resolution for winding up ~
Statement of truth
I believe that the facts stated in this Statement of Affaurs are true.
Full name: Wayne Michael Elliott
Signed Noy puBk ©
Dated: 1% May 2015
A-—Summary of Assets
Assets Book Estimated to
Value Realise
Assets specifically pledged:- £ £
Nil
Assets not specifically pledged:-
Equipment 261 --
Director’s Loan Account 49,854 25,000
Estimated total assets available for preferential
Creditors 50,115 25,000
Signature: Date: 15t May 2015
Al - Summary of Liabilities
Estimated
to realise
£
Estimated total assets available for Preferential
Creditors (carried from page A) 25,000
Liabilities
Preferential Creditors:-
£
Nil | Nil
Estimated surplus as regards Preferential Creditors 25,000
Estimated prescribed part of net property available to
non-preferential Creditors where applicable (to carry forward) --
Debts secured by a floating charge:- £
Nil --
Estimated surplus of assets available
for non-preferential Creditors £ 25,000
Estimated prescribed part of net property available to
Non-preferential Creditors where applicable (brought down) £ --
Non-preferential claims:- £
Trade & Expense 1,600
HM Revenue & Customs 49,000 50,600
Estimated deficiency as regards Creditors (25,600)
Issued and called up capital:- £
100 Ordinary Share of £1 each 100 (100)
Estimated total deficiency as regards members (25,700)
Signature Date 15* May 2015
. COMPANY CREDITORS
NOTE You must identify Creditors under Hire Purchase, Chattel Leasing or Conditional Sale Agreements and
Customers claiming amounts paid in advance of the supply of goods or services and Creditors claiming Retention
of Title over property in the Company’s possession
Name of Creditor Amount of Details of any Date Security Value of
or Claimant and Debt Security held given Security
Address by Creditor
Bl
NON-PREFERENTIAL
1) Baker Fox Limited
Owl Cotes Barn
Low Lane
Cowling
Keighley
BD22 OLE 1,500 Nil
2) Fuel Geme (UK) Limited
PO Box 6139
1 Trimty Court
Broadlands
Wolverhampton
WV113RQ 100 Nil
3) HM Revenue & Customs
Insolvency Claims Handling
Umt (CHU)
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1ZZ 49,000 Nil
Signature: Date: 15* May 2015
STATEMENT OF INSOLVENCY PRACTICE 9 (E & W)
A CREDITORS’ GUIDE TO LIQUIDATORS’ FEES
ENGLAND AND WALES
Introduction
il When a company goes into liquidation the costs of the proceedings are paid out of its assets The creditors, who hope to
recover some of their debts out of the assets, therefore have a direct interest in the level of costs and in particular the remuneration of the
insolvency practitioner appointed to act as liquidator The insolvency legislation recognises this mterest by providing mechanisms for
creditors to fix the basis of the liquidator’s fees This guide 1s intended to help creditors be aware of their rights to approve and monitor
fees, explains the basis on which fees are fixed and how creditors can seek information about expenses incurred by the liquidator and
challenge those they consider to be excessive
Liquidation procedure
21 Liquidation (or ‘winding up’) 1s the most common type of corporate insolvency procedure Liquidation 1s the formal
winding up of a company’s affairs entailing the realisation of its assets and the distribution of the proceeds in a prescribed order of
priority Liquidation may be either voluntary, when it 1s instituted by resolution of the shareholders, or compulsory, when tt ts instituted
by order of the court
22 Voluntary liquidation 1s the more common of the two An insolvent voluntary liquidation 1s called a creditors’ voluntary
liquidation (often abbreviated to ‘CVL’) In this type of hquidation an insolvency practitioner acts as hquidator throughout and the
creditors can vote on the appointment of the liquidator at the first meeting of creditors
23 in a compulsory hquidation on the other hand, the function of liquidator 1s, 1n most cases, initially performed not by an
msolvency practitioner but by an official called the official receiver The official receiver 1s an officer of the court and an official
belonging to the Insolvency Service In most compulsory liquidations, the official receiver becomes liquidator ammediately on the
making of the winding-up order Where there are significant assets an insolvency practitioner will usually be appointed to act as
liquidator in place of the official receiver, erther at a meeting of creditors convened for the purpose or directly by The Insolvency Service
on behalf of the Secretary of State Where an insolvency practitioner ts not appointed the official receiver remams liquidator
24 Where a compulsory tiquidation follows immediately on an administration the court may appoint the former administrator
to act as liquidator In such cases the official receiver does not become liquidator An admunistrator may also subsequently act as
liquidator in a CVL
The liquidation committee
31 Ina liquidation (whether voluntary or compulsory) the creditors have the mght to appoint a commuttee called the liquidation
commuttce, with a minimum of 3 and a maximum of 5 members, to monitor the conduct of the liquidation and approve the liquidator’s
fees The commuttee ts usually established at the creditors’ meeting which appoints the liquidator, but in cases where a liquidation
follows immediately on an admimstration any commuttee established for the purposes of the administration will continue in being as the
liquidation committee
32 The liquidator must call the first meeting of the committee within 6 weeks of its establishment (or his appointment if that
1s later) and subsequent meetings must be held either at spectfied dates agreed by the committee, or when requested by a member of the
committee, or when the liquidator decides he needs to hold one The liquidator 1s required to 1eport to the committee at least every 6
months on the progress of the liquidation, unless the commuttee directs otherwise This provides an opportunity for the committee to
monitor and discuss the progress of the insolvency and the level of the |iquidator’s fees
Fixing the liquidator’s remuneration
41 The basis for fixing the lnquidator’s remuneration 1s set out 1p Rules 4 127 - 4 127B of the Insolvency Rules 1986 The Rules state
that the remuneration shall be fixed
. as a percentage of the value of the assets which are realised or distributed or both,
. by reference to the tume properly given by the liquidator and his staff m attending to matters arising in the
liquidation, or
. as a set amount
Any combination of these bases may be used to fix the remuneration and different bases may be used for different things done by the
liquidator Where the remuneration 1s fixed as a percentage, different percentages may be used for different things done by the
liquidator
It 1s for the liquidation committee (if there 1s one) to determme on which of these bases, or combination of bases, the remuneration is to
be fixed Where it 1s fixed as a percentage, it 1s for the committee to determme the percentage or percentages to be apphed Rule 4 127
says that in arriving at its decision the commuttee shall have regard to the following matters
the complexity (or otherwise) of the case,
any responsibility of an exceptional kind or degree which falls on the liquidator in connection with the insolvency,
the effectiveness with which the liquidator appears to be carrying out, or to have carried out, his duties,
the value and nature of the assets which the liquidator has to deal with
42 If there 1s no liquidation committee, or the committee does not make the requisite determination, the liquidator’s
remuneration may be fixed by a resolution of a meeting of creditors The creditors take account of the same matters as apply in the case
ofthe committee A resolution specifying the terms on which the liquidator 1s to be remunerated may be taken at the meeting, which
appoints the liquidator
43 If the remuneration ts not fixed as above, it will be fixed in one of the following ways In aCVL, 1t will be fixed by the court on
application by the Inquidator, but the liquidator may not make such an application unless he has first tned to get his remuneration fixed
by the committee or creditors as described above and in any case not later than 18 months after his appointment In a compulsory
liquidation, 1t will be in accordance with a scale set out in the Rules
44 Where the liquidation follows directly on from an administration i which the liquidator had acted as administrator, the basis of
remuneration fixed in the administration continues to apply in the liquidation (subject to paragraph 8 below)
Review of remuneration
Where there has been a material and substantial change in circumstances since the basis of the lquidator’s remuneration was fixed, the
liquidator may request that tbe changed The request must be made to the same body as mmttally approved the remuneration and the
same rules apply as to the original approval
What information should be provided by the liquidator?
When seeking remuneration approval
When seeking agreement to his fees the liquidator should provide sufficient supporting information to enable the committee or the
creditors to form a judgement as to whether the proposed fee is reasonable having regard to all the circumstances of the case The nature
and extent of the supporting imformation which should be provided will depend on
° the nature of the approval bemg sought,
. the stage during the admumistration of the case at which it 1s being sought and
° the size and complexity of the case
Where, at any creditors’ or committee meeting, the liquidator seeks agreement to the terms on which he 1s to be remunerated, he should
provide the meeting with details of the charge-out rates of all grades of staff, including principals, which are likely to be involved on the
case
Where the liquidator seeks agreement to his fees durmg the course of the liquidation, he should always provide an up to date receipts and
payments account Where the proposed fee 1s based on time costs the liquidator should disclose to the commuttee or the creditors the
time spent and the charge-out value in the particular case, together with, where appropriate, such additional formation as may
reasonably be required having regard to the size and complexity of the case The additional information should comprise a sufficient
explanation of what the liquidator has achteved and how it was achieved to enable the value of the exercise to be assessed (whilst
recognising that the hquidator must fulfil certain statutory obligations that might be seen to bring no added value for creditors) and to
establish that the time has been properly spent on the case That assessment will need to be made having iegard to the time spent and the
1ates at which that time was charged, bearing in mind the factors set out in paragraph 4 1 above To enable this assessment to be carried
out it may be necessary for the liquidator to provide an analysis of the time spent on the case by type of activity and grade of staff The
degree of detail will depend on the circumstances of the case, but it will be helpful to be aware of the professional guidance which has
been given to insolvency practitioners on this subject. The guidance suggests the following areas of activity as a basis for the analysis of
time spent
. Admunistration and planning
. Investigations
. Realisation of assets
. Trading
. Creditors
. Any other case-specific matters
The following categories are suggested as a basis for analysis by grade of staff
° Partner/Director
. Manager
. Other senior professionals
. Assistants and support staff
The explanation of what has been done can be expected to clude an outlme of the nature of the assignment and the liquidator’s own.
initial assessment, including the anticipated return to creditors To the extent applicable it should also explain
Any significant aspects of the case, particularly those that affect the amount of tme spent.
The reasons for subsequent changes 1n strategy
Any comments on any figures in the summary of time spent accompanying the request the liquidator wishes to make
The steps taken to establish the views of creditors, particularly 1n relation to agreeing the strategy for the assignment, budgeting,
tume recording, fee drawing or fee agreement
° Any existing agreement about fees
. Details of how other professionals, including subcontractors, were chosen, how they were contracted to be paid and what steps
have been taken to review their fees
It should be bome m mind that the degree of analysis and form of presentation should be proportionate to the size and complexity of the
case In smaller cases not all categories of activity will always be relevant, whilst further analysis may be necessary in larger cases
614 Where the fee 1s charged on a percentage basis the lnquidator should provide details of any work which has been or 1s intended to be sub-
contracted out which would normally be undertaken directly by a liquidator or his staff
62 After remuneration approval
Where a resolution fixing the basis of fees 1s passed at any creditors’ meeting held before he has substantially completed his functions,
the hquidator should notrfy the creditois of the details of the resolution in his next report or cncular to them =When subsequently
reporting to creditors on the progress of the liquidation, or submitting hus final report, he should specify the amount of remuneration he
has drawn in accordance with the resolution (see further paragraph 7 1 below) Where the fee 1s based on time costs he should also
provide details of the time spent and charge-out value to date and any material changes in the rates charged for the various grades since
the resolution was first passed He should also provide such additional information as may be required in accordance with the principles
set out m paragraph 613 Where the fee 1s charged on a percentage basis the liquidator should provide the details set out in paragraph
6 14 above regarding work, which has been sub-contracted out
63 Disbursements and other expenses
There 1s no statutory requirement for the committee or the creditors to approve the drawing of expenses or disbursements, but there 1s
provision for the creditors to challenge them, as described below Professional guidance issued to insolvency practitioners requires that,
where the liquidator proposes to recover costs which, whilst bemg in the nature of expenses or disbursements, may include an element of
shared or allocated costs (such as room hire, document storage or communication facilities provided by the liquidator’s own firm), they
must be disclosed and be authorised by those responsible for approving his remuneration Such expenses must be directly incurred on
the case and subject to a reasonable method of calculation and allocation
631 Approval 1s not required for the drawing of necessary disbursements However, not all costs properly charged in connection with
insolvency assignments may necessarily be regarded as disbursements The precise demarcation line between disbursements and
remuneration 1s not defined by statute and has not been specifically determined by the courts Particular difficulties arise in connection
with charges that involve calculations of shared and overhead costs, as these may include an element of remuneration
632 In the absence of a clear statutory definition only those costs that clearly meets the definition of disbursements, where there 1s specific
expenditure relatmg to the administration of the isolvent’s affairs and referable to payment to an independent third party, are treated as
disbursements recoverable without approval In this statement these are referred to as ‘category 1 disbursements’ (approval not
required) Category 1 disbursements will generally comprise external supplies of incidental services specifically identifiable to the case,
typically for rtems such as identifiable telephone calls, postage, case advertising, invoiced travel and properly re:mbursed expenses
incurred by personnel in connection with the case Also included will be services specific to the case where these cannot practically be
provided internally such as printing, room hire and document storage Practitioners should be prepared to disclose information about
specific category I disbursements where reasonably requested in all cases
633 Where it 1s proposed to recover costs which, whilst bemg in the nature of expenses or disbursements, include elements of shared or
allocated costs, they should be identified and subject to approval by those responsible for approving remuneration If the office holder
wishes to make a separate charge for expenses in this second category, he may do so provided that
* such expenses are of an incidental nature and are directly incurred on the case and there 1s a reasonable method of calculation and
allocation, it will be persuasive evidence of reasonableness, if the resultant charge to creditors ts in Ine with the cost of external
provision,
and
. the basis of the proposed charge 1s disclosed and 1s authorised by those responsible for approving his remuneration
These are defined as category 2 disbursements (approving required) Category 2 disbursements will comprise cost allocations, which
may arise on some of the category 1 expense where supplied internally typically, items such as room hire and document storage Also
typically included will be routme or more specialist copying and printing and allocated communication costs provided by the practitioner
or his firm
634 A charge for disbursements calculated as a percentage of the amount charged remuneration 1s not permissible
635 Basic non-incidental costs, including such stems as time costs, office and equipment rental, depreciation, standing charges, finance
charges, accounting and admmustration costs, may not be the subject of separate charges
636 Payments to outside parties in which the office holder or his firm or any assoctate (as defined by section 435 of the Insolvency Act 1986)
has an interest should be treated as category 2 disbursements
637 Where, in a liquidation or a bankruptcy, remuneration ts being taken on the statutory scale and there 1s no committee and it has not been
possible to obtam a resolution of the creditors, category 2 disbursements may only be recovered sf authorised by the creditors
638 It 1s the office holder’s obligation to satisfy himself of the appropriateness of disbursements and the office holder should bear im mund the
matters referred to in paragraph 4 2 above
64 Realisations for secured creditors
Where the liquidator realises an asset on behalf of a secured credhtor and receives remuneration out of the proceeds (see paragraph 111
below), he should disclose the amount of that remuneration to the commuttee (if there 1s one), to any meeting of creditors convened for
the purpose of determining hus fees and 1n any reports he sends to creditors
7 Progress reports and requests for further information
71 The liquidator 1s required to send annual progress reports to creditors The reports must include
° details of the basis fixed for the remuneration of the liquidator (or if not fixed at the date of the report, the steps taken during the
period of the report to fix it),
° if the basis has been fixed, the remuneration charged during the period of the report, respective of whether 1t was actually paid
during that period (except where tt 1s fixed as a set amount, m which case 1t may be shown as that amount without any
apportionment for the period of the report),
. 1f the report 1s the first to be made after the basis has been fixed, the remuneration charged during the periods covered by the
previous reports, together with a description of the work done during those periods, irrespective of whether payment was
actually made during the period of the report,
. a statement of the expenses incurred by the liquidator during the period of the report, irrespective of whether payment was
actually made during that penod,
. a statement of the creditors’ nghts to request further information, as explamed im paragraph 7 2 and their right to challenge the
liquidator’s remuneration and expenses
72 Within 21 days of receipt of a progress report (or 7 business days where the report has been prepared for the purposes of a meeting to
receive the hquidator’s resignation) a creditor may request the hquidator to provide further information about the remuneration and
expenses set out i the report A request must be in writing and may be made either by a secured creditor, or by an unsecured creditor
with the concurrence of at least 5% im value of unsecured creditors (including himself) or the permission of the court
73 The liquidator must provide the requested information within 14 days, unless he considers that
° the time and cost mvolved in preparing the information would be excessive, or
. disclosure would be prejudicial to the conduct of the liquidation or might be expected to jead to violence against any person, or
. the liquidator 1s subject to an obligation of confidentiality in relation to the information requested,
1m which case he must give the reasons for not providing the information
Any creditor may apply to the court with 21 days of the liquidator’s refusal to provide the requested information, or the expiry of the
14 days time limit for the provision of the information
Provision of mformation — additional requirements
The liquidator must provide certain information about the time spent on the case, free of charge, upon request by any creditor, director or
shareholder of the company
The information which must be provided 1s —
. the total number of hours spent on the case by the liquidator or staff assigned to the case,
° for each giade of staff, the average hourly rate at which they are charged out,
° the number of hours spent by each grade of staff 1n the relevant period
The period for which the information must be provided 1s the period from appointment to the end of the most recent period of six
months reckoned from the date of the liquidator’s appomtment, or where he has vacated office, the date that he vacated office
The information must be provided within 28 days of recespt of the request by the hquidator and requests must be made within two years
from vacation of office
What if a creditor is dissatisfted?
91 Except in cases where there 1s a Inquidation commuttee 1t 1s the creditors as a body who have authority to approve the liquidator’s fees
To enable them to carry out this function they may require the liquidator to call a creditors’ meeting In order to do this at least ten per
cent in value of the creditors must concur with the request, which must be made to the liquidator m writing
92 Ifa creditor belreves that the liquidator’s remuneration 1s too high, the basis 1s appropriate, or the expenses incurred by the liquidator
are in all the cucumstances excessive he may, provided certain conditions are met, apply to the court
93 Application may be made to the court by any secured creditor, or by any unsecured creditor provided at least 10 per cent in value of
unsecured creditors (including himself) agree, or he has the permission of the court Any such application must be made within 8 weeks
of the applicant recetving the liqurdator’s progress report im which the charging of the remuneration or incurring of the expenses in
question 1s first reported (see paragraph 7 1 above) If the court does not dismiss the application (which it may if xt constders that
insufficient cause is shown) the applicant must give the liquidator a copy of the application and supporting evidence at least 14 days
before the hearing
94 If the court considers the application well founded, it may order that the remuneration be reduced, the basis be changed, or the expenses
be disallowed or repaid Unless the court orders otherwise, the costs of the application must by paid by the applicant and not out of the
assets of the insolvent company
10 What if the lquidater ts dissatisfied?
If the liquidator considers that the remuneration fixed by the commuttce, or in the preceding admunistration, 1s insufficient or that the
basis used to fix its mappropriate he may request that the amount or rate be increased, or the basis changed, by resolution of the
creditors Ifhe considers that the remuneration fixed by the hquidation commuttee, the creditors, in the preceding administration or in
accordance with the statutory scale is sufficient, or that the basis used to fix it 1s inappropriate, he may apply to the court for the
amount or rate to be mcreased or the basis changed If he decides to apply to the court he must give at least 14 days’ notice to the
members of the committee and the committee may nomunate one or more of 1ts members to appear or be represented at the court hearing
If there 1s no commuttee, the liquidator’s notice of his application must be sent to such of the creditors as the court may direct and they
may nominate one or more of ther number to appear or be represented The court may order the costs to be paid out of the assets
11 Other matters relating to remuneration
Wi Where the hquidator realises assets on behalf of a secured creditor he 1s entitled to be remunerated out of the proceeds of sale in
accordance with the scale set out in the Rules Usually, however, the liquidator will agree the basis of his fee for dealing with charged
assets with the secured creditor concerned
112 Where two (or more) joint lquidators are appointed 11 1s for them to agree between themselves how the remuneration payable should be
apportioned Any dispute between them may be referred to the court, the committee or a meeting or creditors
113 If the appointed liquidator 1s a solicitor and employs his own firm to act m the msolvency, profit costs may not be pard unless authorised
by the committee, the creditor or the court
114 If a new hquidator 1s appointed in place of another, any determination, resolution or court order which was 1n effect mmediately before
the replacement contmues to have effect 1n relation to the remuneration of the new liquidator until a further determination, resolution or
court order 1s made
Where the basis of the remuneration 1s a set amount and the liquidator ceases to act before the time has elapsed or the work has been
completed for which the amount was set, application may be made for a determination of the amount that should be paid to the outgoing
liquidator The application must be made to the same body as approved the remuneration Where the outgomg liquidator and the
mcomung liquidator are from the same firm, they will usually agree the apportionment between them
116 There may also be occasions when creditors will agree to make funds available themselves to pay for the liquidator to carry out tasks
which cannot be paid for out of the assets, either because they are deficient or because 1t 1s uncertain whether the work undertaken will
result m any benefit to creditors Arrangements of this kind are sometimes made to fund litigation or mvestigations ito the affairs of the
insolvent company Any arrangements of this nature will be a matter for agreement between the hiquidato1 and the creditors concerned
and will not be subject to the statutory rules relating to remuneration
12 Ettective Date
This guide apphes where a company —
° goes into liquidation on a winding-up resolution passed on or after 6 April 2010,
° goes into voluntary liquidation immediately following an admumustration on or after 6 April 2010, except where the preceding
administration began before that date,
° goes into compulsory liquidation as the result of a petition presented on or after 6 April 2010, except where the liquidation was
preceded by
- an administration which began before that date,
- a voluntary liquidation in which the winding-up resolution was passed before that date
13 Summary of Charge Out Rates and Disbursement Charges with Effect from 6" April 2014
Rushtons Insolvency Limited Current Hourly Charge Out Rates
Director 200-280
Manager 180
Support Staff 100
Time cost analysis & explanation of work undertaken with effect from 6 April 2014
Category Examples of Work
Administration & Planning Case planning, reviewing, admunstrative set up, appointment
notification, maintenance of statutory records, statutory reporting
and compliance
Realisation of Assets Identify, locating, realising and insuring Company assets Dealing with charged and past
secured assets and verifying security documentation
Trading Employee issues, instructing experts and agents, accounting,
management operations
Investigations Statutory duties, SIP 2 review, SIP 4 & CDDA reports, antecedent
transactions and viable matters brought to our attention
Creditors Communicating with creditors, (secured, preferential and unsecured)
creditor claims, adjudication on claims, dealing with preferential creditors
(employees) and dividends
Reporting Reports and circulars to Creditors
Case specific matters The nature of insolvency work means not every case 1s the same and may produce unique work
requirements not covered above
Rushtons Insolvency Limited — Disbursements recovery policy — SIP 9
Category _1 disbursements
Bordereau/insurance Charged at cost
Case advertising As per advertisers/agents invoice
Courter Charged at cost
DTI IVA registration fee Charged at cost (in relevant cases)
Land Registry/Searches As per Land Registry, agents or Companies House invoice
Post re-direction, Charged at cost
Subsistence Charged at cost
Category 2 disbursements
Travel Charged at cost for public transport and taxis
Mileage 1s recharged at 45p per mile
Postage Communication costs based on a charge of £6 25 per cieditor/debtor/shareholder/employee/company
officer Communication costs mcludes postage, photocopying/printing and fax
Room Hire £100 room hire made available in-house for case specific meetings Charges
only to be made when attendance of debtor/director and/or creditors 1s hkely and a meeting room has been
set aside Whete appropriate, external room hire at cost (Category 1)
Storage Document storage at a rate of £7 50 per box per year