We act for a number of property management companies where the leaseholders of individual flats get together and buy the freehold of the block through a limited company. We prepare statutory accounts and Corporation Tax Returns and bookkeeping, where required. Once agreed the Return and accounts are then submitted to HMRC and Companies House in the required iXBRL format and confirmation of agreement is then sent to the client.
For Companies House compliance, we suggest Inform Direct. Access usually costs £72 pa however we include this as part of our annual fees.
HMRC notes on running a flat management company can be found here.
We can usually train you to do your own bookkeeping. For larger companies have a look at QuickBooks Online (QBO). Most clients need an initial one hour training session during which we set up the bank feeds, etc. Any further queries they may have can then be answered by phone. A second session is not usually needed but can be provided on request. For most property management companies the bookkeeping is straightforward (ie tracking leaseholders’ contributions and property expenses. In these circumstances VT Cashbook, which is free, will be sufficient.
Where the client does wish us to do everything we charge on a time basis at £25 per hour.
Company accounts and Corporation Tax Return.
Usually between £300 – £750 pa. This is for full statutory accounts, abbreviated accounts and the Corporation Tax Return.
£30 – £100 plus VAT per hour depending on level of seniority of individual undertaking the work. The £30 rate is for routine work while the higher rates will apply to advice on changes in legislation and tax planning.
Third party charges.
There is a £13 pa charge for the Companies House Confirmation Statement and a £10 monthly charge for the *QuickBooks Online bookkeeping license.
*Some of our simpler companies don’t bother with this and use their own system or VT.
Examples of our the types of client we deal with and charges are below.
This company owns the freehold for 42 flats and uses management agents for maintenance, collection of lease contributions and the day to day bookkeeping on Sage. They send us through the bookkeeping records after the year end. We then review the records, enter the year end adjustments and prepare the accounts. Once agreed we make the submission to Companies House. A Corporation Tax Return is not required as we applied for the company to be treated as dormant for tax purposes some years ago. Our annual charges for this type of client are between £500 and £600.
We started acting for this 9 flat company last year. Unfortunately the contributions and payments by the individual leaseholds had not previously been tracked so there was no breakdown of the opening balances for the individual leaseholders, only a total amount. What can be done in these circumstances? Either go back and reconstitute the records from previous years (this will be time consuming and expensive) or the leaseholders will have the agree the breakdown between themselves.
This first year required a great deal of sorting. We now have access to the bank transactions which we import all the transactions into VT . The accounts are then generated from this. This company was also paying for a Corporation Tax Return to be completed and we have applied for dormant status to avoid doing this in future years.
We charged £1,000 for the first year but expect this to be significantly less going forward.
This is a four flat property company. They have followed our instructions on bookkeeping and keep a VT data file for each year on Dropbox. We charge £300 for preparation of the accounts and submission to Companies House.
Published 5 December 2017.