How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxadvisor.uk Your Own Question

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4795
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

The lessees of 4 flats own the freehold of the block of flats

Customer Question

The lessees of 4 flats own the freehold of the block of flats and the driveway, and access to the driveway is shared with 5 other properties. The freeholders/lesses of all 9 properties contribute to the maintenance costs of the driveway. A legal agreement has now been drawn up for this, and the freeholders/lesses of the 5 other properties will need to see the annual accouts for the driveway. Will it be necessary to have a separate bank account for the maintenance costs of the driveway.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.

It all depends how you operate any agreement at present. If there is no special arrangement in place, then a separate account albeit not necessary would be helpful to alleviate any misunderstanding and it would also promote transparency.

It would be a good practice to separate funds used for common purpose and it makes accountability that much easier and straight forward.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

Many thaks for your prompt reply. If a separate account is not used, how would you recomend notification of costs incurred, and current value of maintenance fund.

Expert:  taxadvisor.uk replied 1 year ago.

Brian, thank you for your reply.

A bank account should be sufficient to record all incomings and outgoings in the first place.

What is important is that each activity is clearly identified and inflow and outflow of funds is allocated to activity as appropriate. Maybe on a quarterly basis some internal statement is prepared (management accounts) that reconciles movement of funds to activities undertaken.

A competent book-keeper should be able to provide this service at reasonable cost.

I hope this is helpful.

Customer: replied 1 year ago.

Are you suggesting that the private bank account for the 4 flats would be sufficient? I note that it is important for each each activity to be clearly identified and inflow and outflow of funds is allocated to activity as appropriate. Obviously the freeholders/lesses would not have any access to this bank account.

Expert:  taxadvisor.uk replied 1 year ago.
Brian, a private bank account can suffice provided all incomings and outgoings are clearly indentified.

The freeholders/lesses may not have access to this bank account.
The accountant/committee managing the maintenance project would/should have as good accounting practice.

The members would be provided with management reports that would clearly explain how the funds have been utilised at any given point and what is left in the maintenance fund.

Transparency is the key ..

I hope this is helpful.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4795
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions