What is a Service Charge? How Do I Pay It? How Is It Prepared?

A service charge is where each household on a development, or within an apartment in a block, contributes a financial sum each year to pay for the upkeep of an area that benefits the communal and units within the block.

How do I pay Service Charge?

If Blockera is your Block Managing Agent, and Urban Evolution are your Lettings and Property Managing Agent, then Service Charges are deducted from rental income payments for that period automatically. This will be shown in your quarterly statements and a summary of costs is sent to you.

If you have a different Block Managing Agent, you would need to contact them directly to pay service charges.

If you have a different Lettings and Property Managing Agent, you must pay Blockera directly, and Blockera will send invoices requesting Service Charge in line with your lease agreement.

If my statement is a negative figure, will I need to make a payment?

If you are transitioning your block management to Blockera, any negative balances in the April statements will be rolled onto the Q2 statement. You will not need to make a payment. Going forwards, from July onwards, yes – you will need to settle any negative balances. Even if your unit is not tenanted you still have to pay service charges to Blockera as this covers communal upkeep of the building as a whole.

I am a non-resident landlord, will I receive my income gross?

If you already have approval from HMRC to receive your income without the 20% tax deduction, you will need to inform HMRC that Urban Evolution is your new lettings agent. In turn, HMRC will then confirm to us that your rental payments can be paid with no tax deducted. You can do this by contacting HMRC with the below details:

Tel: +44 3000516644
Urban Evolution NRL No.: 904/NA062301

Urban Evolution Address: Helix Building, First Floor, Edmund St, Liverpool L3 9NY

If you have not previously applied to receive your income gross and would like to do so, you can apply using the following links:

NRL1 Application (for individuals):

(if you do not have a UK National Insurance number please use the ‘Apply using the postal form’ option)

NRL2 Application (for companies):

NRL3 Application (for trusts and estates):

Please see this link for further information

How is the service charge budget prepared?

Over the course of the year, Blockera scrutinises every cost, tariff and contract to identify where savings can be made and costs reduced, we negotiate with suppliers during this time to ensure you are getting the best price on materials & labour. A new budget will then be issued towards the end of the year - relating to the following year.

What if I am Overcharged?

If it is found that landlords have been charged too much against certain line items, or where Blockera have managed to renegotiate contracts at a lower price, those over-budgeted amounts will be credited towards the future year’s budget. This will be presented to you closer to the time.