RTM Company Accountants in London: File Your RTM Accounts on Time

Written by Sharaz Zaman, Founder of GM Professional Accountants, AAT Member with 15+ years London accounting experience.

If you are a director of a Right to Manage (RTM) company in London, you must file annual accounts with Companies House within nine months of your accounting period ending, and a Company Tax Return with HMRC within twelve months, even if the company is dormant. Corporation Tax on any income beyond service charges, such as parking or laundry fees, is due nine months and one day after your year end. GM Professional Accountants prepares and files RTM company accounts for leaseholders across London and Essex, so nothing is missed and no penalty notice arrives unexpectedly.

Key Takeaways
✓RTM company accounts are filed at Companies House and are entirely separate from service charge accounts held for leaseholders
✓Corporation Tax is due nine months and one day after your accounting period ends, even for mostly dormant RTM companies
✓Late filing penalties start at £150 and rise to £1,500 for accounts filed more than six months late
✓A Commonhold and Leasehold Reform Bill is expected in the 2026 to 2027 parliamentary session and may affect RTM cost rules
An RTM company is a company limited by guarantee formed under the Commonhold and Leasehold Reform Act 2002, letting qualifying leaseholders take over a building’s management from their landlord. It must file annual accounts and a Corporation Tax return, kept separate from service charge accounts.

What Is an RTM Company and Why Does It Need Its Own Accounts?

The Right to Manage was created under the Commonhold and Leasehold Reform Act 2002, giving qualifying leaseholders the power to take over management of their building from the landlord, without needing court approval or the landlord’s consent. Once formed, the RTM company is a company limited by guarantee in its own right. It must have its own bank account, keep its own accounting records, and file its own statutory accounts with Companies House every year, in exactly the same way as any other private limited company.

There are now an estimated 4.90 million leasehold dwellings in England, making up around one fifth of the entire housing stock, and the majority of these are flats where an RTM company could take on management (Source: Ministry of Housing, Communities and Local Government, Leasehold Dwellings 2024 to 2025).

What Is the Difference Between RTM Company Accounts and Service Charge Accounts?

This is the single most common source of confusion, and the mistake we see leaseholders make most often. Service charge money is collected and held in trust for leaseholders under the Landlord and Tenant Act 1985. It must never be reported as income or turnover inside the RTM company’s own statutory accounts. The two sets of accounts serve different purposes, follow different rules, and go to different places, as the table below shows.

AspectRTM Company AccountsService Charge Accounts
Filed with Companies HouseYes, a public recordNo, private to leaseholders
Governed byCompanies Act 2006Landlord and Tenant Act 1985
What it coversThe company’s own transactions, such as bank interest or incidental incomeBuilding costs: repairs, insurance, cleaning, maintenance
Where the money sitsCompany fundsHeld in trust for leaseholders, not company income

Service charges are a significant sum for most leaseholders. The median annual service charge in England was £1,375 in 2023/24, rising to £1,920 in London, where most RTM companies are formed (Source: House of Commons Library, Leasehold housing in England: Statistics, 2025). Keeping this money clearly separated from the RTM company’s own accounts protects both directors and leaseholders.

When Do RTM Company Accounts Need to Be Filed with Companies House?

Private limited companies, including RTM companies, must file their annual accounts with Companies House within nine months of their accounting reference date. So if your RTM company’s financial year ends on 31 March, your accounts are due by 31 December the same year. A newly formed RTM company has slightly longer for its first set of accounts, twenty one months from the date of incorporation. On top of annual accounts, every RTM company must also submit a Confirmation Statement to Companies House at least once every twelve months, confirming that details such as directors and registered office remain correct. Missing either deadline can trigger automatic penalties and, eventually, action to strike the company off the register. Full guidance is available on GOV.UK’s overview of filing company accounts and tax returns.

Does an RTM Company Pay Corporation Tax?

Most RTM companies are treated as dormant for Corporation Tax purposes, provided all money passing through the company relates only to service charges held in trust. However, if your RTM company earns any other income, such as parking space rentals, laundry token sales, or bank interest, that income is taxable and must be declared on a Company Tax Return, known as a CT600. The CT600 must be filed with HMRC within twelve months of your year end, but any Corporation Tax owed is due earlier, nine months and one day after the accounting period ends. Paying before you have finished filing is normal, and often necessary.

Can an RTM Company File Dormant Company Accounts?

Many RTM companies qualify to file simplified dormant company accounts, provided the company holds no bank account other than a designated client or trust account for service charges, has no other trading activity, and earns no taxable income of its own. If any of these tests are not met, for example because the company rents out parking bays or holds funds in its own name, full statutory accounts are required instead. Getting this classification wrong is a common reason RTM filings are rejected by Companies House, so it is worth having an accountant confirm your position each year.

What Happens if RTM Company Accounts Are Filed Late?

Companies House penalties for late private company accounts start at £150 for filings up to one month late, rising to £375, then £750, and up to £1,500 for accounts filed more than six months late (Source: Companies House, late filing penalty guidance). Persistent late filing can lead to warning letters and, ultimately, strike off action, at which point the company’s assets can pass to the Crown. Separately, HMRC charges its own penalties, starting at £100, for a late CT600. Directors remain personally responsible for meeting both deadlines, even where a managing agent handles the building day to day.

What Changes Are Coming for RTM Companies in 2026 and 2027?

The Leasehold and Freehold Reform Act 2024 has already begun reforming the cost rules and voting rights around Right to Manage claims, so leaseholders generally no longer need to cover their freeholder’s legal costs when applying. A further Commonhold and Leasehold Reform Bill is expected during the 2026 to 2027 parliamentary session, which is likely to affect how RTM companies operate and how commonhold is used going forward (Source: House of Commons Library, Leasehold reform in England and Wales, February 2026). We recommend RTM directors review their accounting structure with a specialist accountant well ahead of any changes taking effect.

Why Choose an RTM Accountant in London and Essex?

GM Professional Accountants supports RTM company directors and leaseholders across London and Essex, with teams based in Ilford, Wimbledon, and Old Street, and a wider East London presence. We understand the pressure points specific to London blocks: high service charge values, mixed use buildings, and complex freeholder relationships. Many of our RTM clients also hold buy to let flats or run their portfolios through an SPV, and our team supporting property investors and landlords in London can align your personal, company, and RTM filings so nothing is duplicated or missed. Whether your RTM company is active, dormant, or newly formed, our London based accountants keep you compliant and on schedule.

RTM Directors Choose GM Professional Accountants Because These are just some of the benefits our RTM company clients enjoy with GM Professional Accountants
✓Stress free, on time filing every year
✓Clear separation of RTM company and service charge accounts
✓Full HMRC and Companies House compliance
✓Responsive, direct communication with your accountant
Join Us in Three Easy Steps
1 Step 1 Consultation & Documentation We review your RTM company’s structure, bank accounts, and existing records to confirm what is owed and by when.
2 Step 2 Preparation & Filing We prepare your statutory accounts, Confirmation Statement, and CT600 where needed, and file everything correctly and on time.
3 Step 3 Ongoing Support We track your deadlines year on year and answer any HMRC or Companies House queries as they arise.

Frequently Asked Questions

1. Do RTM companies have to file accounts even if dormant? Yes. Even a fully dormant RTM company must file annual accounts with Companies House and a Confirmation Statement every year, though the accounts themselves can usually be filed in a simplified dormant format.
2. What is the deadline for filing RTM company accounts with Companies House? Private RTM companies must file within nine months of their accounting reference date, or within twenty one months of incorporation for a first set of accounts.
3. Can service charge money be included in RTM company accounts? No. Service charge money is held in trust for leaseholders under the Landlord and Tenant Act 1985 and must never be reported as income inside the RTM company’s own statutory accounts.
4. Does an RTM company pay Corporation Tax on parking or laundry income? Yes. Any income beyond service charges, including parking rentals, laundry token sales, or bank interest, is taxable and must be declared on a CT600 Company Tax Return.
5. What happens if RTM company accounts are filed late? Companies House penalties start at £150 and rise to £1,500 for accounts filed more than six months late, alongside separate HMRC penalties for a late CT600.
6. Can GM Professional Accountants help set up a new RTM company? Yes. Our team can support the accounting setup for a newly formed RTM company, including opening the right accounts, registering with Companies House and HMRC, and building compliant financial processes from day one.
Need Help With Your RTM Company Accounts? Speak to Sharaz Zaman and the GM Professional Accountants team today. Contact Us
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