October 10th 2019 / BY: Wisteria

Service charge audit requirements

Within most leases there is often a requirement for the landlord to provide an annual statement of service charge expenditure to occupiers after a service charge period. It is common for the annual statement to be certified by the landlord’s surveyor, managing agent and accountant. Certain leases might also require the statement to be audited.

Where there is no express requirement in the lease to prepare an annual statement of service charge expenditure it is considered good practice as it provides a level transparency to the occupiers if a service charge statement is prepared and certified.

Our principal aim is to assist property management agencies and property owners to meet their service charge obligations and obtain certification. Our clients rely on us to deliver a comprehensive, flexible, value-for-money service backed by a thorough understanding of the commercial and residential property industry.

Our service charge team has over 50 years combined experience that undertake service charge audits and related work for over 150 properties ranging from small residential and commercial sites to large regional shopping centres.

Our procedures have been designed to recognise risks of misstatement and to ensure that these do not produce delays. Our standard approach of 100% testing of transactions supported by analytical review procedures give the best assurance that the annual statements are free from material misstatement.

Our services include:

  • Preparation and certifying the annual statement of service charge expenditure
  • Ensuring recoverable and non-recoverable expenses are correctly allocated
  • Preparation of statutory accounts for management companies
  • VAT and other tax advice
  • Registered auditors

We work closely with managing agents and leaseholders alike, delivering an efficient, timely and cost-effective service.

If you would like to know more then please contact Wisteria Tax Advisers, Accountants and Registered Auditors, on +44 (0) 208 429 9245. Or alternatively email us at info@wisteria.co.uk.