If you live in a block of flats or property with communal areas it is likely you are required to make service charge contributions towards any shared costs. The format and reporting of the service charge contributions and corresponding expenditure is governed by the requirements of a lease or tenancy agreement. Often a Right to Manage (RTM) or Residents’ Management Companies (RMC’s) is incorporated to act as a vehicle to manage this process.
In some circumstances the statutory financial statements of the Limited Company are dormant with separate service charge accounts being prepared, in other circumstances all the transactions are recorded in the company’s accounts.
Here at HSC we can guide you through this process. Our service include:-
- Review of leases and other documents to decide the type of reporting required
- Accounting for both Limited Company and/or Service charge accounts
- Audit or Report of Factual Findings
- Attending Annual General Meetings
- Tax advice on surplus funds and bank interest earned on cash deposits