Q: Can we request accounts on behalf of residents under Section 21 notice, if we are not formally recognised by our managing agents? We don’t have the required 50 per cent. We have been told we can’t. They have previously stated they will work with us, however. Does this also apply to Section 22 notice …
Q: We have now accumulated nearly £20,000 in the bank. It is now time to earn some interest on it which will require paying Corporation Tax. I have telephoned and written to HMRC without success to find out how we initiate the process. How we should proceed? FPRA Hon Consultant Gordon Whelan replies: I …
New Rules on VAT Q: We read in the press an alarming note on VAT – New HMRC Rules mean that managing agents will have to charge VAT on cost of staff that managing agents themselves employ on behalf of leaseholders. In our case, this was the situation when the leaseholders took over the freehold …
Lack of Bank Statements Q: We have held a second meeting with the managing agent accountant and the property manager for our retirement development. Further concerns regarding the management of our three reserve funds have arisen. On request we have been provided with the full 2018 bank statements for the service charge account. No reserve …
Dormant Company and Tax Q: We are a limited company with 15 shareholders for the 15 flats in our building. We do not trade, nor do we have “income” except for advance payments from our 15 shareholders to cover our annual operating costs. In terms of Companies House and the Inland Revenue, what is our …
Q: I am sure you are aware that the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) came into effect last year. These regulations require trustees to hold a considerable amount of personal information about settlors of trusts, including dates of birth and national insurance numbers. HMRC …
Q: We own the freehold of a block containing eight flats. The owner/residents of the flats own the company. We have recently taken control of the company. We have decided to continue paying the same maintenance charge we paid when we employed an agent. This means that our informal Roof Fund will increase by an …
Q: I am the secretary of our residents association. Currently there is an amount in the service charge to go to a reserve fund, but, in the first year, it barely covers cost incurred. We have just received a long term maintenance plan (LTMP) from the managing agent and that would need the annual reserve …
Q: We have read recently about sinking funds. We wonder whether our lease enables us to create one? We may need to save for a long-term project of replacing our block of garages, and wonder whether we could do this by having a sinking fund. If we had a sinking fund, if someone sold their …
Q: One of our directors has suggested that she could audit our annual accounts for the AGM and save us £300 pa. However in our lease it states that the accounts have to be certified by a competent chartered accountant and she is a MAAT and has been a member of the Association of Accounting Technicians for …