How to read your service charge accounts

England and Wales · Law checked 24 October 2026 · Not legal advice

Most blocks issue an annual budget (on-account demands) and year-end accounts, then a balancing charge or credit.

What to look at

• Budget vs actual for each line. Big variances need explanation.
• Accruals: costs included before invoices arrive. Ask what they are.
• Reserve fund movements: money in, money out, balance.
• Accountant's report: for blocks of more than four flats, a section 21 summary must be certified.
• Your apportionment: does your percentage match the lease? See apportionment.

Ground rent isn't part of the service charge and follows different rules (see ground rent vs service charge). Then use section 22 to check the invoices behind the lines you question.