The Department for the Economy has made a statutory rule - the Disqualified Directors Compensation Orders (Fees) Order (Northern Ireland) 2026 - to introduce a time‑costed fee for distributing money to creditors received under compensation orders or undertakings. Made on 11 February 2026, the instrument is subject to the Northern Ireland Assembly’s affirmative procedure and comes into operation the day after it is affirmed by resolution. The Department of Finance has concurred, as recorded on the face of the Order, with publication on legislation.gov.uk.
Under Article 2, the Department is to be paid a fee for performing the function of distributing to a creditor any amount it receives in respect of a compensation order or compensation undertaking. The fee is satisfied out of the amount received before any distribution is made to creditors. For the purposes of the instrument, “compensation order” and “compensation undertaking” are the terms used in Article 19A of the Company Directors Disqualification (Northern Ireland) Order 2002.
The calculation method is fixed in the Order. The Department aggregates: the time spent by appropriate officials carrying out the distribution function across all creditors named in the relevant compensation order or undertaking, costed at the hourly rates in the Schedule; and any necessary disbursements or expenses properly incurred. That total is then divided equally between the total number of specified creditors. The per‑creditor share of the fee is deducted before payment is made.
Article 3 confirms that, where Value Added Tax is chargeable in respect of this service, VAT must be paid in addition to the fee. Organisations should account for the possibility that creditor payments will reflect both a share of the fee and any VAT due on that charge, depending on the Department’s VAT treatment of the activity.
The equal‑share approach is explicit. The Order does not apportion the fee by the size of individual claims; every creditor listed in the compensation order or undertaking bears the same cash deduction. Finance teams should model recoveries on the basis that small and large claims are subject to the same per‑creditor charge derived from the aggregated time and disbursements.
Governance and powers are set out on the face of the instrument. The Order is made by the Department for the Economy with the concurrence of the Department of Finance under Article 361(1)(b) of the Insolvency (Northern Ireland) Order 1989, read with Article 24(1) of the Company Directors Disqualification (Northern Ireland) Order 2002. It is sealed by the Economy Minister, Dr Caoimhe Archibald, and concurred by a senior officer of the Department of Finance, Patrick Neeson, both dated 11 February 2026. The Department for the Economy confirms Dr Archibald has served as Economy Minister since 3 February 2025.
The policy operates within the compensation framework established in Northern Ireland in 2015 and expanded in 2021. Article 19A of the 2002 Disqualification Order - inserted by the Small Business, Enterprise and Employment Act 2015 and amended by the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 - allows the Department to secure compensation from disqualified directors where losses to creditors can be shown. The new fee mechanism funds the Department’s administrative work to distribute those monies.
Operationally, the Schedule aligns hourly rates with the Insolvency Service grading structure. Case records should evidence time spent by grade and itemise necessary disbursements or expenses to support the calculation. Clear creditor communications explaining the equal division of the aggregated fee will help minimise disputes at the point of payment.
The Explanatory Note confirms that no separate regulatory impact assessment has been produced, on the basis that no impact on the private or voluntary sectors is foreseen. An Explanatory Memorandum is published alongside the instrument on legislation.gov.uk and sets out the policy background and the Schedule reference for hourly rates.
Next steps depend on Assembly approval. As an affirmative instrument, the Order will take effect the day after the Assembly affirms it by resolution. Until then, organisations anticipating distributions via compensation orders or undertakings can plan on the basis of the published formula, noting that the final deduction for each creditor will be an equal share of the total time‑costed fee plus any necessary disbursements, and VAT where applicable.