Mgt Company Tax No & Tax Clearance Cert

Hoping that someone can help with a query that we the directors of our management company have. We have an apartment in our block that is owned by Dublin City Council (DCC) for affordable housing and the rest of the units are privately owned. New directors have been appointed to the management company and we wish to bill all service charges directly from the Mgt Co as opposed to billing through our managing agent. The reason we wish to go through the Mgt Co is that there were issues in the past with payments going directly to the previous agents bank account and what expenses they paid.

The problem we have is that for the DCC apartment they require a tax clearance certificate before they will make payment (they have no issue with the payment and are back dating it). This appears to be a requirement of all government departments. As far as we can see the Mgt Co has no tax number so obtaining a tax cert is not straight forward. We have spoken to revenue but waiting to hear back which could be a while.

Has anyone had a similar issue in the past and what advise/resolution you got.

Thanks

You can register the company for Corporation tax and get a tax no. Form TR2.
The tax office may grant an exemption from filing an annual return.
With a CT no you can get a tax clearance cert.

Lever said:

The reason we wish to go through the Mgt Co is that there were issues in the past with payments going directly to the previous agents bank account and what expenses they paid.

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get that changed ASAP, get a bank account set up in the name of your Management Company LTD (i'm surprised this was never done) and have the directors as signatures on the account not teh agent, if possible make sure that ALL directors or at least 2 directors must sign each cheque, the agent can arrange to send the cheques for signing once a month by dropping them off to you or you can collect them thats what we do, just make sure to review invoices that go with the cheques.

This way the directors of the company then control the bank account and not the agent it also means you can ensure critical services are paid first before the lower priority debts and the agent LOL , dont give them authority to write cheques or make transfers. use online banking if you want and set the agent up with an account to review that way they can check for payments made to the account but not actually transfer payments. thats how i do it

Lever said:

New directors have been appointed to the management company and we wish to bill all service charges directly from the Mgt Co as opposed to billing through our managing agent.

Click to expand...

Just have the agent bill on your headed paper with your bank account details, all cheques should be made payable to your management company and not the agent. if people make them out to the agent the agent should return them to the sender and ask for them to address them correctly and not cash them in their account and transfer it to yours. this way it's clear who paid what to your company and can make it easier if theres a query on a bill someone claims is paid and your accounts show differently.

Do DCC need a tax cert if the amount is under a certain limit? your company is not providing them contractor services so may not actually need to supply them look into that.

in our case how we got around it is that our local council require a tax clerance cert if the invoice is over a certain amount (something like 10-15K) each shareholder has a unique account number so we sent them an invoice for each account(they have 50 units) that way they recieved 50 invoices for €1000 for 50 different account numbers and so it falls well short of the limit for the tax cert requirement. cheeky i know but it worked for us