aim key cog flag clipboard-pencil podium flare signal lamp pie-chart graph scale2 hammer2 balance traffic-lights road archery wall share2 warning notification-circle circle-minus prohibited book book2 bookmark

Call your nearest office

Or ask us a question

Search our site

What are you looking for?

share

Question: What is the difference between “in” and “with”?

Answer: Quite a lot when it comes to the 3rd RICS Service Charge Residential Management Code.

There was a subtle change between the draft 3rd Residential Management Code and the final Code that was released on 1st June 2016. However, it appears that this change has been missed by most observers, even though the change is of significant importance to Managing Agents, as it affects how they fulfil their obligations under the 3rd RICS Code.

The section of the Code to highlight is Section 3.6 – OTHER INCOME. This concerns the annual declaration that Agents now have to make to clients with regards to their management and includes income received from insurance, fees and commissions. With respect to this, the draft code states, “….The amount of the income should be declared as a note in the Service Charge accounts.” However, in the final version of the Code, Section 3.6 states “…. The amount of the income should be declared annually with the year end service charge accounts”.

The intention of the change is clear. The onus is now on Managing Agents to prepare a standalone statement to be issued with the service charge accounts. There is no requirement in the Code to include this statement as a note to the accounts. Managing Agents will now need to give some thought to the form that this statement is going to take, as will professional bodies such as ARMA.

A similar change in emphasis has also been made with regards to declaration to clients and leaseholders of connections with companies, contractors or suppliers (Section 10.1 of the 3rd RICS Code). This declaration now has to be made outside of the year-end service charge accounts and not as a note to the accounts as was intended in the final draft of the Code.

I am very disappointed by these changes. At Haines Watts the service charge team believes that the best and simplest way to present this information is within the year-end service charge accounts.  Please contact us if you wish to discuss this further.

Gordon Whelan

For advice, information or simply a quick chat about your service charge needs, please get in touch using our contact form

Who we work with

The Haines Watts Service Charge Team has worked with Managing Agents, Surveyors, Landlords and Residents

Find out more

What we do

Read more about our services and how we can help your business

Find out more

Meet your team

Find out more about our team

Find out more

About Us

Haines Watts is a top 15 firm of chartered accountants supporting over 35,000 business owners across the UK.

Find out more

Contact Us

Want to get in touch? Use our contact form below.

Contact Us

Get in touch

Whatever issue or question you have, we’ve got the answer.
If you want to get in touch then please complete our form.

Luton

Haines Watts Luton
42 High Street
Flitwick
Bedfordshire
MK45 1DU

Southampton

Haines Watts Southampton
130 Bournemouth Road
Eastleigh
Hampshire
SO53 3AL

Our addresses

Luton

Haines Watts Luton
42 High Street
Flitwick
Bedfordshire
MK45 1DU

Tel: 01525 717424

Southampton

Haines Watts Southampton
130 Bournemouth Road
Eastleigh
Hampshire
SO53 3AL

Tel: 02380 276323