Percentage Fee

The variable component of enforcement fees calculated as a percentage of the outstanding debt above a prescribed threshold. Under the Taking Control of Goods (Fees) Regulations 2014, the percentage is 7.5% of the amount exceeding £1,900 (Table 1) or £1,200 (Table 2).

In practice

The percentage fee applies at both the enforcement and sale stages. For example, under Table 2, if the debt is £5,000, the enforcement stage 1 percentage fee is 7.5% of £3,800 (the amount over £1,200), which is £285, added to the fixed element of £200. Rounding follows regulation 7(c): under regulation 7(c) any fraction of £1 in the percentage fee is reckoned as £1 and any fraction of a penny is disregarded. The percentage fee means that enforcement costs increase proportionally with larger debts.