Ineligible Service Charges (or not)

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    Julian Stanbury

    Apologies for asking what i hope is a simple question, but my mind has chosen to abandon me on this one.

    If a service charge contains the wages cost of a team of people supporting tenants and the properties, lets say 4 team members and a manager, and each of the team members costs were attributable as follows:

    20% costs eligible for HB
    80% costs ineligibe for HB

    Would the managers costs be ineligible based on the proportion of time spent supervising those team members?

    Staying with my basic example, each officer requires 15% of the mangers time (totalling 60% for the 4 officers), so would 80% of that 60% be ineligible as it is supervising ineligible costs?

    Any help greatly appreciated, especially pointers to relevant regs or case law.

    Many thanks, Julian.

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