Service Charge Accounts
What are service charge accounts?
Service charge accounts are specific to the property management industry. They are used by landlords and investment companies to collect service fees from tenants. Service charges are additional to rent and are designed to cover costs associated with maintenance. For example elevators, communal areas, gardens, car parks, and security.
Service charge accounts should be independent to statutory accounts, however still include:
Income and expenditure statement
To help protect tenants from receiving unreasonable service charges, the Landlord and Tenant Act (LTA) requires landlords to provide tenants with the following documents:
An account highlighting the fees
Summary of costs
Service charge accounts can be variable or fixed and should be prepared on an accruals basis. Before these accounts are sent to occupants, they should be examined by an accountant and an examination certificate attached.
It is beneficial for both landlord/company and tenants if these accounts are accurate and transparent. Many landlords/companies are not aware of the financial requirements stated by HMRC, and they can be penalised for having improper accounts.
More Group can prepare professional service charge accounts, ensuring you are compliant with HMRC’s financial requirements and thereby helping you avoid legal issues.
How we can
Our team have excellent knowledge of HMRC’s requirements and the technical experience to produce reliable service charge accounts.
More Group can also help you with an independent audit to certify your accounts are suitable to be sent to tenants. Many of our clients find working with professionals increases their tenant’s satisfaction and enables landlords/companies to focus on their property management.
We specialise in delivering an efficient service to our clients and will ensure your accounts are completed quickly at a competitive price. Contact us for information on service charge accounts and to book your free initial consultation.