What is Service Charge Accounting?
Under S42 of The Landlord & Tenant Act very lessee is entitled to receive a statement of account of expenditure to which they need to contribute towards as defined within the lessee’s lease.
What is the lessee entitled to?
The primary and the most important document is the lease. This will stipulate the majority of the framework of the service charge:
The annual accounting period
When the service charge demands will be issued
Service charge demands payment terms
The demise structure and relevant costs (service charge schedules)
What happens to surplus/deficits
Accumulation of reserves
What else needs to be considered?
Often a company will be linked with the relevant property. Dependent upon the entitlement to non service income, will dictate whether dormant or full company accounts will be required. Again we can fully assist and deal with all the compliance with HMRC and Companies House.
What is the tax position?
A service charge account is actually a simple Trust. HMRC have given dispensation on several aspects of the Trust. Need to know more? If so then email your specific set up and we can let you know what compliance issues, if any, need to be dealt with.
How Can We Help?
We provide best practice financial and compliance support to help you cut through the red tape and relieve the stress of potential financial exposure.
Service charge accounting services are tailored to your setup so get in touch with us and we would be delighted to talk about your setup.
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