Statutory Accounts and Service Charge Accounts
If you are a director of a Residents’ Management Company you are required to produce Statutory Accounts for shareholders and Companies House and also Service Charge Accounts for the leaseholders, which usually need to be independently examined.
We prepare very detailed Service Charge income and expenditure accounts which show an in-depth analysis of costs incurred on behalf of residents.
There are a number of advantages of using our services:
- It removes the administrative burden of producing statutory accounts, and Service Charge Accounts;
- Provides professional support to the Directors;
- Because of the high level of detail, it reduces the number of questions at the AGM.
Wherever possible Laurie Powell will attend the AGM, to present the accounts to the leaseholders.
Trust Self Assessment Tax Return
Any investment income accrued on the service charge trust fund (normally bank interest) is chargeable at the standard rate of income tax. Where tax at the standard rate is deducted at source from interest credited to the service charge account, HMRC have indicated that they will not require a trust and estate self assessment return to be completed. It will therefore reduce administration if arrangements are made to have basic rate tax deducted at source from interest earned on service charge monies.
If tax is not deducted from investment income our Trust and Estate Tax Return Service includes:
- Preparation of trust and estate tax return
- Calculation of tax for the tax return year
- Submission of the completed return to H.M. Inspector of Taxes
- Calculation of future tax liabilities and advice on due dates of payment
- Advice on any tax repayments
- Checking and agreeing Inland Revenue demands
Income that belongs to the RMC, such as ground rent, is not part of the variable service charge and is not subject to the section 42 trust provisions. It will, instead, fall within the scope of corporation tax, and a self assessment Company Tax Return will be required.
Our Corporate Taxation services include: -
- Computerised tax computation and return service
- Advising on what expenditure is, and what is not, allowable against tax
- Negotiate with the Inland Revenue if required
- Completing and filing the 5 yearly dormant company review notice
Company Secretarial Services
If you are not sure where to locate your registered office or just need a central point for communication from Companies House and the Inland Revenue, then why not use our office?
We can receive important correspondence and deal with it on your behalf, so taking another pressure away from your busy schedule
An Annual return must be filed at Companies House each year. We can prepare and file this return on your behalf.