Accountant required?

[LaraJara21]

Hi

Not sure if this is the right forum however I have a question about accountants.

We run a limited company for our small property (5 flats, all share of freehold) and previously we have been paying an accountant £400 every year to certify the accounts and submit to companies House.

Unfortunately the building has been poorly managed for years and I've been chucked in the deep end as this is my first property and no clue on running a company. Sooo....

Is the accountant legally required? Is there a cheaper way of doing this?

Thank you in advance

[AndrewDod]

Well accountants do need to earn £800/hour. It's a closed shop.

No not legally required, unless lease says.

It takes 15 minutes to poorly manage yourself. 60 minutes to do an OK job.
How many ledger lines are there annually - 20?

[Neelix]

£400 per year sounds a bargain

using an accountant is a good idea imho

ps how is this relevant to a poorly managed building?

[thevaliant]

I'd agree £400 is pretty reasonable.

I lived in a 7 flat block many years ago. I did the accounts myself, properly. Took a few days each year in total, but the company and fellow lessees got the whole works.
No audit (of course) despite the lease requiring it. I ignored that.

You could try and do it yourself, but you'll almost certainly fall over with getting the wording right for Companies House submission....

[Gordon999]

When running a company, you have to make regular checks on your company 's details posted at Companies House website for last date for filing annual accounts etc or you may be fined.

You should keep on using the accountant for 2-3 years until you understand the work before changing to someone else. £400 p.a is OK.

[Starlane]

Well what does your lease say firstly? Are you declaring dormant accounts? If you have a management company or appoint them their cost should include preparing the accounts since hey arre sending out the service charge demands. As for an accountants fee this would be a members cost possibly for filing Company House stuff.

[eagle2]

If the property is badly managed, you have other priorities than removing or replacing the accountant. The lease probably refers to an annual certificate or statement to be produced to the leaseholders and even if the lease does not require that document to be produced by an accountant, you will not be criticised if it is. £400 is not unreasonable and a Tribunal is unlikely to find otherwise.

[andydd]

This page explains the (confusing) requirements......there was a law bought in requiring properties (of more than 2 I think) to be audited BUT it was never bought into force. - https://www.servicechargedisputeguid...20your%20Lease.

Is the Ltd Co. a RTM company ?, there is less accountancy for them as basically its just money in = money out so no profit or corp tax etc, but for all other Ltd Cos its quite complex, I used an accountat for a year or so till I understood it but now do my own accounts but use Xero an online accountancy package (£14 a month), this is fopr my personal IT services company although I am setting up an RTM and may use Xero for that too.

[Gordon999]

An RTM company is set up by leaseholders for administration of service charge account for the building.

Larajara21 has informed that his company owns 5 flats in the building and the company, must be receiving "rental income". So he needs the accountant to do the annual accounts for company and comply to annual filings at Companies House.

We don't know if the building has only 5 flats and if his "company" or "freeholder company" is responsible for maintenance of the building.

[eagle2]

It is extremely confusing, firstly it does depend on the lease as stated in #2 and #6 above. The RICS code 7.13 advises that "service charges should be subject to an annual examination by an independent accountant unless the costs cannot be recovered".

If a leaseholder makes a request under s21 LTA 1985 for a summary of relevant costs and the service charges are payable by the leaseholders of more than four dwelllings, the summary must be certified by a qualified accountant. (RICS code 7,12)

The distinction is important, an independent accountant can be anyone calling him/herself an accountant, a qualified accountant must be a registered auditor.

Unless a leaseholder raises a complaint, I should leave the accountant as it is until you become more familiar with running the Company.