Principal or Agent? [Residential Management Companies]

Published on 20th December 2013Author: Peter Rogol

I recently issued an apology on behalf of my Institute for its determination that Residential Management Companies must produce Statutory Accounts containing completely pointless information. But perhaps, after all, they don't. The Institute and the Financial Reporting Council issued their edict based on legal counsel's opinion that RMC's "always act as principals (not agents) in their residential management transactions with third party suppliers."

What if the RMC's contacted all their third party suppliers - typically there aren't many - and advised them that the RMC was acting as agent for its leaseholders, and that in future all invoices must be addressed to "[Name of RMC] as agent for its Leaseholders"? Could it be that legal counsel's opinion would need to change?

I'm no lawyer, but my guess is that if all third party suppliers are formally identifying the RMC as an agent, counsel would be hard-pushed to argue to the contrary.

So come on, ICAEW, help us out here. Go back to counsel, and pose the question - if third party suppliers invoice "[Name of RMC] acting as agent for its Leaseholders", does FRED 50 go west?

Recent Insights

Investing in UK Property as a non-resident: key tax considerations - Part 1

Investing in UK Property as a non-resident: key tax considerations - Part 1

Published on 30th September 2026Read time clock10 min read
Categories: Personal Tax, Property & Construction, Tax
My dog ate my tax return, and other stories: late Self-Assessment excuses, and what actually works

My dog ate my tax return, and other stories: late Self-Assessment excuses, and what actually works

Published on 16th September 2026Read time clock10 min read
Categories: Tax
Goodman Jones invests in next generation of accountancy talent with new trainee intake

Goodman Jones invests in next generation of accountancy talent with new trainee intake

Published on 3rd September 2026Read time clock5 min read
Categories: News