That might be a point that gets me. Maybe it is a remaining question after this one as they had not asked as yet
Thanks for highlighting this point
As I said, I was investigating Monzo first, but if it is not my end destination then that is a little sad and we move on
There are many thousands of companies such as this, so it cannot be a case not adequately handled by some banks
your Business Current Account is not a Client Money account and you do not use our services to hold and/or carry out transactions with Client Money.
Have Starling here chosen to go with different terminology for this after bunging it in a PDF? Handy
At least Monzo had it in the one paragraph on their web page that I skimmed over. Thanks again to @breville_monkey for highlighting that particular paragraph
From reading results from Google I can even see there is plenty of debate as to whether a client trust account is legally required, as compared to advised, given that the relevant text never actually became law e.g.
https://www.fpra.org.uk/qa/service-charge-funds-need-designated-trust-account
Guess I will end up shelling out some more money down the line, an emerging pattern
While I am looking, here is Revolutâs take on matters:
You cannot hold, exchange, transfer or manage client funds in a Revolut Business account. Client funds essentially means any money that belongs to your customers. For example, an investment firmâs âClient fundsâ is their customersâ money which they invest on their behalf. You would not be able to hold or manage client money in a Revolut Business account.
That seems to suggest in their case you could not even have a separate client trust account at another bank and withdraw into the business account to pay contractors
Is that a standard pattern I wonder
I am not sure I am actually finding a pattern here yet, just adding additional data points
Itâs legally required by section 42 of the landlord and tenant act 1987. Read it - itâs quite clear!
You really should consider following https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/service-charge-residential-management-code/ rather than google! The RICS code isnât technically mandatory but should you fall into any kind of dispute itâs the yardstick you will be measured by anyway.
I think youâll need (forgive the terminology!) a ârealâ business bank account like Barclays or Santander etc for this one.
The logs, reconciliations, annual statements etc. Accounting for client money gets complex.
Management company of a building is not an active NFE.
Providing services to manage buildings could be an active NFE, if you offer that as a service to many building management companies. I.e. like Freeport offers it as a service to thousands of building management companies all around the UK. Which each individual building management company chose to hire as a service provider for a fixed term to provide day to day services.
In general terms, active NFE buys / makes / transforms things and sell with a markup. Coffee shop, hair salon, etc. As freelance or with fixed outlets. They generally can have variable number of clients, not fixed in time.
Quite unlike a building management company that operates under the lease framework, has sink funds, and has additional regulation on which things it has to do and how.
Yeah, that is the impression I am getting
Came for the discussion of one question, stayed for a much wider discussion
Not sure there is actually any huge disagreement there lolz!
It would be nice if that was written down explicitly anywhere on gov.uk
Give me a fighting chance is all I ask! 
I do get the impression that a lot of this is deliberately opaque to preserve the âinformation asymmetryâ that companies rely on for fees
Anyhow, I might talk to a local accountant this week about setting up accounts and a framework, but keen not to get too fleeced and learn/do what I can along the way, only ducking out when it seems to be running away from me like here (lessons I can pull across from software engineering!
I think you missed the point. The money is client trust money, that is a legal requirement under the landlord and tenant act 1987.
This is mentioned in the RICS code along with guidance about how to treat this money - if you follow the RICS code you will stay on the right side of the law which is why it is recommended.
Starting to be quite glad that I didnât end up involved in the purchase of the freehold for my building!
No, I got the point, but all âtechnicallyâ and âmaybeâ and âprobablyâ is just such a great place to be!
Thanks for all the points and pointers
Sorry, still missing the point slightly. Itâs not a technically or maybe thing it is a legal requirement and if you donât keep the money in a client trust account you will be breaking the law. Iâm only trying to be clear here for your sake.
I come back to the fact that the current guy has been doing this all for multiple places in the city while sitting in his villa in Cyprus or Malta
Yeah I will need to probably bit the bullet and spend more money up front (more money always seems to be the solution for such problems!) on some accountant stuff, but it should not be too dramatic across multiple years
The biggest drama this year is the electrician not turning up for weeks to change the battery on the smoke alarm
Ultimately all about control and I will be glad to have that, but not glad to have to wade through a (brief?) period of admin setup
No, I get you on the specific point. All read and understood 100%. Thanks
Now just vaguely curious, mainly just for interest and to flesh things out before you get too worried about what I do, whether I could have a bank account for the business itself at one of these âunrealâ banks and a dedicated client trust account somewhere super worthy
Revolut seem to be suggesting that the client money cannot even pass through their business account, even if it was in a client trust account, which is interesting
Presumably cleaners and the like get paid from the business account, which removes the appropriate amount from the client trust account - how else could it really work? - so they would be out
I can see myself trotting down to the High Street and getting both there at this rate, making this an interesting topic of discussion for reference mainly
I may have missed this/not understand, but is it really client money?
If I pay you (for arguments sake) ÂŁ1200 a year for the management/upkeep of the building, then at no point can I claim that back? Youâre not looking after it for me, youâre collecting it to use for the building should it need it. Obviously the on-going costs like cleaning/insurances are done and then you have the bigger jobs that may require dipping into saved funds, say to repaint somewhere, or repair a leak or anything else that can go wrong.
If at some point there is a surplus, then you can decide if thereâs a discount given on future years.
I think you can claim it back in specific circumstances, but very specific related to collapse of the business and the like
I have never done so myself in 15 years, but then I have just done boring things like live here
The surplus generally stays with the freeholder when you sell your flat - pay it forward to smooth the costs
I think the surplus actually gets slopped at year end to a different bank account, but now I am starting towards thinking I am getting out of my depth
Yes, it is as legally defined by the landlord and tenant act.
Itâs not a case of, you get the service charge as some sort of fee for your business and then itâs your businesses money. Instead the business manages the service charge account.
Different with ground rent of course, not that there will be any once I have become the last to renew my lease and wipe that out
That is âprofitâ and does go to the business