If you are a Landlord, Tenant Management Company or Managing Agent then you then you may be familiar with the rules governing the compulsory preparation of service charge accounts for any property containing 5 or more residential units. For properties with 4 or fewer units, service charge accounts are not compulsory, but must be provided if a tenant requests them.

Tenants want to know how their service charge money has been spent, and every managing agent has a legal obligation to provide such information. The task of the Statutory Auditor is to prepare such information in a way that is hassle free for managing agents yet provides tenants with clear and precise information as to how their money has been spent.

At RDP Newmans we have a dedicated Service Charge Team whose expertise in the field of property management accounting is highly regarded by managing agents, residential landlords and tenants alike.

We provide the following services:

Service Charge Statement preparation

Our accounts follow current best practice and include an income and expenditure account, balance sheet and reserve fund statement as standard.

Certification of accounts

Under current legislation, all residential properties with 5 or more units are required to have their annual service charge accounts to be certified by a Statutory Auditor
Our approach provides for a rigorous scrutiny of expenditure and ensures that the accounts provide transparency and accuracy to landlords, managing agents and lessees.

We liaise with managing agents and work with them so that they understand what information we require to enable them to provide it at the year end with little hassle.

Management companies

We prepare accounts for the residential management companies that are often linked with the properties. We ensure that these comply in all respect with the Companies Act requirements and file these with Companies House.

There are circumstances in which the management companies require their accounts to be audited. Our dedicated audit team is well equipped to provide this service.

Taxation

Trust tax returns

All service charge funds are held in trust for the tenants. Accordingly, a trust is created for tax purposes and any interest income is taxable. Where required, our tax team will prepare and file these returns.

Corporation tax

Where a management company has its own income (e.g. ground rents, interest), the company is required to prepare corporation tax returns. Our tax team will prepare and file these tax returns. We will also advise on ways to minimise the tax and compliance costs.

Company secretarial services

We provide the entire range of company secretarial services for any management company and can therefore assist the company secretary with fulfilling their obligations in this regard. This includes issuing share certificates to all new shareholders filing annual returns etc.

Managing Agent’s client accounting

We can carry out a review of managing agents’ client accounting to ensure this compliance with the requirements of their regulatory body (e.g. RICS, ARMA).

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