Accounting Software for RTM Company

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Accounting Software for RTM Company

    As we will be running the company on a shoestring, I was wondering if there is a piece of software we could use to produce our annual accounts for submission to Companies House.

    There won't be much activity to account for, so it seems pointless to hire an accountant to do the accounts when we won't be able to recover the fees from anybody.

    So, is there a piece of software we can use for this?

    #2
    RTM should (probably) submit dormant accounts.

    I'd be more concerned about the service charge accounting.

    Comment


      #3
      Originally posted by MCPH View Post
      RTM should (probably) submit dormant accounts.

      I'd be more concerned about the service charge accounting.

      Dormant companies are inactive companies, so I'm afraid you're wrong there.

      Service charges are going to be limited to the actual expenditure and can be produced in any format whatsoever.

      As indicated in my post, I am concerned with the company's annual accounts to be submitted to Companies House.

      Comment


        #4
        Dormant companies are widely used but it is wrong, as while the basic filing fee or cost of a dormant return will let you be dormant, the RTM is liable for the entire service charge in the same way as a landlord.

        As long as the lease allows the recovery of the SC certification you could ask an accountant to produce a simple I & E account which breaks down turnover into SC I & E and RTM I & E, and split the accountancy costs between them. He then expands on both I & E, and certificates SC as the lease requires and if it can be recovered under the 85 Act.

        IN fact a word in the ear of small company and they will likley do the company account for a notional amount, but keep them separate!
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          The best way is to form a Residents Association for the block of flats and let the RTM company appoint the RA Chairman as the managing agent. This will allow the RTM Company to remain dormant company and simplefy the annual accounting returns required by Companies House. The annual audited service charge accounts can be produced separate from the RTM company account.

          See Arma recommendation on "service charge accounting" for RTM and RMC

          http://www.arma.org.uk/doc/public/LA...-26-10-11-.pdf

          Comment


            #6
            Rubbish.

            The RA is only an agent-a manager of the money- the RTM still has the financial liability of the SC expenses.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              The service charges do not form part of the I&E of the RTM in the same ad they don't for any LL. So how is it that an RTM is anything but dormant?

              Comment


                #8
                Originally posted by MCPH View Post
                The service charges do not form part of the I&E of the RTM in the same ad they don't for any LL. So how is it that an RTM is anything but dormant?
                Thats a common misapprehension- an RTM or landlord incur expenses as a landlord and recover them. While some have in advance payments some are in arrears and some leases have indemnities. but at any time the amount a landlord can recover can fall short

                Whose then is the expenditure.....

                Don't forget the law only requires the income to be held in trust, the expenditure is theirs.


                Scenario a company files as dormant and then the next year having lost an LVT case, they have to report a huge loss and are insolvent or have to call on members to voluntarily pay. That's several breaches of the Companies Act.
                Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                Comment


                  #9
                  Originally posted by MCPH View Post
                  The service charges do not form part of the I&E of the RTM in the same ad they don't for any LL. So how is it that an RTM is anything but dormant?
                  The Lease is a legal contract which requires the leaseholders to pay service charge to the lessor/freeholder. The RTM company incorporated under the 2002 Act has the "legal right" to claim the administration duties under the lease and managing the service charge account from the freeholder and its agent.

                  The RTM company does not trade for profit with outside parties and makes no profit from the service charge account, and therefore has no reportable income. Since RTM has no reportable income, it falls under the Companies House definition of "dormant company" and so , it can submit annual returns as a "dormant company".

                  The RTM company is usually a company limited by guarantee which I think is one pound per member. So nobody will see any gain from sueing a guarantee company if one pound per flat is the maximum claimable.

                  For information on residents association see

                  http://www.fpra.org.uk/

                  Comment


                    #10
                    No an RTM CO has to be limited by guarantee.

                    Again the definition of dormant is no significant transactions,and it has significant income, held in trust, as well as the

                    An RA is no more than an agent in this scenario and therefore it is irrelevant.

                    It is nothing to with profit.
                    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                    Comment


                      #11
                      Perplexed ,

                      So, have we answered your question ?

                      Comment


                        #12
                        Originally posted by leaseholdanswers View Post
                        No an RTM CO has to be limited by guarantee.

                        Again the definition of dormant is no significant transactions,and it has significant income, held in trust, as well as the

                        An RA is no more than an agent in this scenario and therefore it is irrelevant.

                        It is nothing to with profit.
                        Sorry I am just sick to death of Fire-foxes updates and auto correct into gibberish.


                        No an RTM CO has to be limited by guarantee.

                        Again the definition of dormant is no significant transactions,and it has significant income, held in trust, as well as the expenditure, even if held in an agents client account.

                        An RA is no more than an agent in this scenario and therefore it is irrelevant.

                        It has nothing to with profit.
                        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                        Comment

                        Latest Activity

                        Collapse

                        • Share of feehold/shared service charges?
                          by Stu1020
                          Hi there,

                          I'm new to the forum and looking for advice on a sticky freehold situation.

                          I own a two-bed flat in a converted building with two one-beds. The lease states that a fair proportion is payable towards the service charge. However, there has been a running agreement of...
                          20-05-2022, 11:39 AM
                        • Reply to Share of feehold/shared service charges?
                          by Gordon999
                          Since your flat has 2 bedrooms and other flats have one bedroom, you should keep the existing 38:31:31 split as fair contribution to the annual service charge account.

                          For lease extension, the cost is mainly solicitors charges plus registration charge at Land Registry and Mortgage Lender.(...
                          28-05-2022, 10:48 AM
                        • Reply to Building works & S20 process
                          by Gordon999
                          The S20 consultation with leaseholders is required for any planned works which exceed £250 cost per flat.

                          If any planned works are quoted below £1000, you could place the order on the supplier with lowest quote. .

                          If the freeholder is self- managing the building maintenance,...
                          28-05-2022, 09:56 AM
                        • Building works & S20 process
                          by RichA
                          Hi. I have a freehold after selling a leasehold flat in a block of 4 flats. We don't currently have a managing agent, so these duties currently fall to me (I am holding off appointing a managing agent whilst the leaseholders consider whether they want to RTM).

                          The block needs some maintenance...
                          21-05-2022, 17:20 PM
                        • Reply to Share of feehold/shared service charges?
                          by sgclacy
                          You appear to have bought into the flat knowing at the time your share is 38% and having owned the flat feel that this is unjust.

                          Did you raise any concerns questions at the time of purchase that in a three flat split you would be paying more than 33.33% . Could it be argued that the unfairness...
                          28-05-2022, 09:04 AM
                        • Reply to Share of feehold/shared service charges?
                          by eagle2
                          The cost of extending a lease is not a service charge expense so there is no reason to allocate it on the 38/31/31 basis, your offer to split those costs equally seems to be reasonable. It is up to the freeholder to decide what is fair and reasonable for the service charges and it is up to the other...
                          28-05-2022, 05:29 AM
                        • Reply to Old managing agents accounts
                          by eagle2
                          Unless the handover took place at the end of the financial year, it is the RTM's responsibility to produce the annual accounts. You could try making a formal complaint against the agent to supply copies of all supporting documents, it should belong to a redress scheme. The difficulty is that the agent...
                          28-05-2022, 05:05 AM
                        • Old managing agents accounts
                          by jazzythumper
                          Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising...
                          20-05-2022, 11:21 AM
                        • Reply to Freehold confusion
                          by CStevens
                          davetg,

                          The property should be registered so the land registry should hold a copy of the leases. You would need to look at the leases to see who is responsible for what but normally in a maisonette situation the freeholder would insure and maintain the structure, foundation and roof with...
                          27-05-2022, 21:58 PM
                        • Freehold confusion
                          by davetg
                          30 years ago I bought a flat from a friend. The freehold at the time was registered to my friend and the lady who owned the other flat. I understood at the time that I would replace the friend on the freehold but this never happened. This was not a problem until now as when work on the structure of...
                          24-05-2022, 14:29 PM
                        Working...
                        X