Complex, and frequently confusing, accounting procedures for housing associations and registered social landlords (RSLs) especially with the upcoming changes being introduced by FRS102 can be a huge burden for a sector.
This in addition to a sector already under extreme pressure as noted by issues highlighted in the budget 2015:
- Benefits cap reduced to £23,000 in London and £20,000 outside of the capital.
- English Associations facing a reduction in social housing sector rents of 1% annually for next four years. Will Wales have to follow suit? Will banks attitude to the sector in general be affected.
- Tax Credit and Universal Credit to be limited to families with up to two children from 2017.
- Working age benefits frozen for four years.
- Housing benefits for 18-21-year-olds scrapped for those deemed not vulnerable.
- National Living Wage – A new, compulsory National Living Wage of £9 per hour for over-25s by 2020. Starts next April at £7.20 per hour – up from current minimum wage of £6.50.
The Institute for Fiscal Studies (IFS) think-tank said that the Budget will actually make the poorest tenth of families in the country around £800 a year worse off by 2019. The next-poorest tenth of families will experience an even bigger loss, with their annual income slashed by £1,100.
The Office for Budget responsibility believe the increase in the cost of wages for businesses will lead to cuts in hours available of 0.4 per cent – resulting in 60,000 lost jobs. Those cuts will hit people in lower paid jobs the hardest.
We have almost 40 years’ experience of acting for housing associations, charities and not for profit organisations. We currently act for 10 Housing Associations including standard RSL’s and stock transfers organisations.
In addition to carrying out the statutory audit, we have also provided assistance with group structures, trading subsidiaries, VAT and tax matters.
How can we help?
- Accounting and audit services – specifically dealing with the issues pertinent to the charity and not for profit sectors
- Taxation services including Gift Aid where relevant
- SORP accounting and IFRS compliance where relevant
- Payroll & VAT
- Internal controls
- Governance reviews
- Risk management and reserves policy advice
- Completion of annual returns
- Guidance on funding
To contact a member of our specialist social housing associations team, please click here. Alternatively please call us on 01792 410100.