How much to charge.............

How much to charge.............

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Hello

What would you say is reasonable to charge for the preparation of accounts and submission to Co. House for a Flat Management Co. consisting of 4 x newly built flats??

I will admit, this is a new one for me.

Many thanks for your time.

Replies (11)

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Teignmouth
By Paul Scholes
14th Aug 2012 13:33

Steep learning curve

Hi - If you are new to Flat (Residents) Management Companies then have a look at this recent discussion to get an understanding of why things are a little up in the air on this topic at the moment.  In addition this gives more detail of the recent UITF release.

So whilst the accounts may be easy there's potentially a lot going on behind the scenes and it's important you get a copy of the 4 leases (or 1 if they are all the same) as this will determine whether you have to prepare service charge accounts as well as the company accounts.

As well as the technical issues, many on this site will tell you not to touch FMCs with a barge pole because, getting a group of disparate individuals (or couples) to agree to something is not worth the hassle.  It's important therefore to have someone who lives there to do the books and arrange agreement to accounts & queries, ie don't get involved with them as a group.

With the last small block I dealt with, I had no hassle and it was all neat & tidy and I charged them £400 ish pa, then my main contact moved and I quoted them £1,000 in anticipation of the mess. If you're still interested then work out what your normal fee would be and add 30%-50%.

 

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Replying to SJRUK:
Red Leader
By Red Leader
14th Aug 2012 13:58

null quote

I wouldn't quote as I steer clear of them. Totally endorse Paul's points. Only be prepared to take it on if you are looking to have several/many of them, as you will need to learn stuff that will be of no use to you with your more mainstream clients.

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By uktaxpal
14th Aug 2012 14:33

Unless you are conversant with the relevant law this is not an area to practice.

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By hannahaston
14th Aug 2012 14:44

Thanks for your answers Guys, after digging around on here it does seem that I should steer well clear. One reason being that as uktaxpal says I'm not fully conversant with this area and also I don't think I'll end up making any money on this once I've had to do on the reading up on the subject.  TBH, I'd rather channel my energies into what my Practice deals best with, Sole Traders, 'normal' Ltd Companies, VAT etc etc.

What makes this more difficult is that the person who has approached me is a family friend so need to tackle this carefully! 

Thanks again :)

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Teignmouth
By Paul Scholes
14th Aug 2012 14:59

I'll do it if.....

they are within 5 miles of Carshalton!

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By hannahaston
14th Aug 2012 15:17

'fraid not.............

...............Northamptonshire! Otherwise I would happily pass on you details :)

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By uktaxpal
14th Aug 2012 20:36

sub-contract is a good idea until you have built a reasonable level of experience.

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By Robert Clubb
22nd Aug 2012 12:03

Rules is rules!

As we are both accountants and communal property managers, we know the rules. They aren't that complicated, but its important that the owners company and service charge bank accounts are set up properly, following Court of Appeal guidelines.

If you need any call, just ask.

 

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By JSaunders
22nd Aug 2012 12:59

Service charge Accounts

I agree that, in order to be involved in Service charge Accounts, you really need to be a specialist in this area as it is very different from a mainstream sole trader or limited company.  I deal with 50+ service charges, mainly through managing agents.  Location is not usually an issue as we tend to do most of our communication electronically.  If they are able to communicate electronically, I would be more than happy to help...(from the south east)

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By hannahaston
22nd Aug 2012 14:40

Took your advice..........

and turned client away. They were fine and understood which is good as I do their personal Tax Returns :D

 

I believe they have found someone else now through their letting agent..........

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7om
By Tom 7000
22nd Aug 2012 16:00

£300 +vat

well unless the lease says it needs an audit

 

its easy do some service charge accounts and bang some ''empty'' accounts into co hse

 

We do lots and lots and lots and some have over 500 flats and some have 3 ...when the templates set up...no problems

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