Service Charge Accounting
We provide service charge accounting services for residential, commercial and mixed-use properties throughout England and Wales.
Service charge accounting is a distinct area of property accounting, with reporting requirements often influenced by lease provisions, legislation and industry guidance. Whether acting for a landlord, resident management company (RMC), right to manage company (RTM company) or managing agent, clear and reliable financial reporting remains an important part of the management process. We prepare service charge accounts and related reports for a wide range of property structures, from small residential developments through to larger residential, commercial and mixed-use schemes.
Our Services
Our services include:
- Preparation of residential service charge accounts
- Preparation of commercial service charge accounts
- Independent accountant’s reports and certifications
- Accounts and corporation tax returns for RMCs and RTM companies
- Trust tax returns where applicable
- Assistance with service charge accounting transitions and handovers
- Support with accounting treatment and reporting queries
We work alongside managing agents and property managers to help ensure reporting requirements are met in an efficient and practical manner.
Residential Service Charge Accounts
Residential service charge accounts are prepared having regard to the lease and applicable guidance.
Our work is typically undertaken in accordance with recognised industry guidance, including ICAEW Technical Release TECH 03/11 and ACCA Technical Factsheet 172, together with relevant legislation and current sector developments.
We regularly prepare accounts for:
- Resident Management Companies (RMCs)
- Right to Manage Companies (RTMs)
- Freehold companies
- Mixed-use developments containing residential units with VAT element.
Recent Developments in Service Charge Accounting
The service charge sector has seen a number of notable developments in recent years.
Commercial Property
Recent updates to the RICS Service Charges in Commercial Property Professional Standard and ICAEW TECH 09/14BL have increased the emphasis on transparency and disclosure within service charge reporting.
Areas receiving particular attention include:
- Insurance commission disclosures
- Disclosure of certain insurance claims and recoveries
- Reporting of future works and funding arrangements
- Consistency of year-end reporting
- Year end accounts deadline reduced from 6 months to 4 months.
- Enhanced disclosure notes
Residential Property
The updated RICS Residential Management Code places greater emphasis on transparency and communication with leaseholders.
Across the sector there is increasing scrutiny of:
- Insurance-related disclosures
- Service charge reporting standards
- Reserve and sinking funds
- Leaseholder access to financial information
- Consistency of accounting presentation
We continue to monitor developments issued by ICAEW, ACCA, that may affect service charge reporting.
Why Clients Work With Us
Clients typically engage us because we offer:
- Experience in both residential and commercial service charge accounting
- A dedicated focus on property-related accounting assignments
- Familiarity with recognised reporting frameworks
- Clear and practical communication
- Consistent support throughout the accounting process
Our objective is to provide service charge reporting that is clear, reliable and appropriate to the requirements of the property concerned.
Frequently Asked Questions
What is the difference between service charge accounts and statutory accounts?
Service charge accounts report on service charge funds collected and spent for a property. Statutory accounts report on the activities of a company, such as an RMC or RTM company. In many cases both sets of accounts may be required.
Do service charge accounts need to be certified by an accountant?
The answer depends primarily on the lease. Some leases require an audit, or s21 report, some require certification by an accountant, and others require a different form of independent review.
What is TECH 03/11 or Factsheet 172?
TECH 03/11 is joint guidance issued by ICAEW, ACCA and other industry bodies covering the preparation and reporting of residential service charge accounts.
What is TECH 09/14BL?
TECH 09/14BL is ICAEW guidance relating to accountant’s reports on commercial property service charge expenditure statements.
Do insurance commissions need to be disclosed?
Disclosure requirements have become an increasing area of focus in both residential and commercial service charge reporting. The precise requirements depend on the applicable framework and circumstances of the property.
How long after the year end should service charge accounts be produced?
Residential service charge accounts:
ICAEW TECH 03/11 states that leaseholders paying variable service charges should receive an annual service charge statement within six months of the end of the accounting year. The annual statement should include an income and expenditure account and a balance sheet prepared on an accruals basis.
Commercial service charge accounts:
The updated RICS Service Charges in Commercial Property Professional Standard (2nd Edition, 2025), together with the revised ICAEW TECH 09/14BL (2026), expects service charge accounts to be issued within four months of the year end, or an explanation provided where this timescale cannot be achieved.
Timely reporting helps ensure transparency and enables leaseholders, occupiers and property managers to review accounting information while it remains relevant.
Can you assist with RMC and RTM company accounts?
Yes. We can prepare statutory accounts, corporation tax returns and Companies House filings for resident management companies and right to manage companies alongside service charge reporting where required.
