Company Registration No. 05852134 (England and Wales)
GOVERNMENT GRANT & TAX CONSULTANTS LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
PAGES FOR FILING WITH REGISTRAR
GOVERNMENT GRANT & TAX CONSULTANTS LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
GOVERNMENT GRANT & TAX CONSULTANTS LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2020
30 September 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
4
29,594
19,023
Tangible assets
5
83,507
20,585
113,101
39,608
Current assets
Stocks (work in progress)
6
1,365,362
1,752,859
Debtors
7
4,136,647
835,822
Cash at bank and in hand
509,763
685,431
6,011,772
3,274,112
Creditors: amounts falling due within one year
8
(2,510,647)
(1,411,596)
Net current assets
3,501,125
1,862,516
Total assets less current liabilities
3,614,226
1,902,124
Capital and reserves
Called up share capital
80
80
Capital redemption reserve
23
23
Profit and loss reserves
3,614,123
1,902,021
Total equity
3,614,226
1,902,124
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 March 2021 and are signed on its behalf by:
S Phillips
Director
Company Registration No. 05852134
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 2 -
1
Accounting policies
Company information
Government Grant & Tax Consultants Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2nd Floor Churchill House, 26-30 Upper Marlborough Road, St. Albans, Hertfordshire, United Kingdom, AL1 3UU.
1.1
Accounting convention
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements are prepared on a going concern basis. The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern
true
.
The directors have carried out their assessment of going concern and taking into account the economic conditions and possible changes in trading performance, they have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, the extent of the impact of coronavirus is unclear and it is difficult to evaluate all the potential implications on the company's trade, customers, suppliers and the wider economy.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account rebates
and discounts.
Revenue from contracts for the provision of professional services is recognised
at the point of submission of the resultant claims to the tax authorities or the point at which it is probable that the claim will be made. It is at this stage the fair value of the transaction can be reliably measured.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
50% on cost
The expenditure capitalised
relates to the enhancement of third party software acquired and
includes the cost of subcontractors.
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
20% on cost
Fixtures and fittings
33% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Stocks (work in progress)
Revenue from work in progress is recognised at the point of submission of the resultant claims to the tax authorities or the point at which it is probable the claim will be made. Full provision is made for losses on all contracts in the year in which they are first foreseen.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 4 -
1.9
Financial instruments
Trade and other debtors
Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.
Trade and other creditors
Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 5 -
1.13
Leases
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Bad debt provision
Given the significant uncertainty caused to the UK economy as a result of the Covid-19 pandemic, the directors have reviewed the potential impact on the business and reflected the risk around particular sectors such as hospitality, retail and leisure
with
appropriate levels of provisions. The directors will continue to keep these levels under constant review as the UK continues to adjust to the ongoing impact of the pandemic
Other than for the level of impairment against trade debtors
and work in progress
as a result of Covid-19, there are no other key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
35
-
During the year employees were transferred from The Business Advisory Limited (former Parent Company) following a group restructure.
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 6 -
4
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 October 2019
23,648
67,450
91,098
Additions
-
30,900
30,900
At 30 September 2020
23,648
98,350
121,998
Amortisation and impairment
At 1 October 2019
23,648
48,427
72,075
Amortisation charged for the year
-
20,329
20,329
At 30 September 2020
23,648
68,756
92,404
Carrying amount
At 30 September 2020
-
29,594
29,594
At 30 September 2019
-
19,023
19,023
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2019
-
70,329
70,329
Additions
64,545
20,348
84,893
Disposals
-
(52,415)
(52,415)
At 30 September 2020
64,545
38,262
102,807
Depreciation and impairment
At 1 October 2019
-
49,744
49,744
Depreciation charged in the year
4,909
17,062
21,971
Eliminated in respect of disposals
-
(52,415)
(52,415)
At 30 September 2020
4,909
14,391
19,300
Carrying amount
At 30 September 2020
59,636
23,871
83,507
At 30 September 2019
-
20,585
20,585
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 7 -
6
Stocks (work in progress)
2020
2019
£
£
Work in progress
1,365,362
1,752,859
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,312,392
410,038
Amounts owed by group undertakings
2,703,423
10,304
Other debtors
120,832
415,480
4,136,647
835,822
8
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
330,374
266,267
Corporation tax
204,656
187,309
Other taxation and social security
660,876
109,715
Other creditors
1,314,741
848,305
2,510,647
1,411,596
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Lindsey Tyler FCA.
The auditor was Azets Audit Services.
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 8 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases due within one year:
2020
2019
£
£
Within one year
118,529
97,422
Between two and five years
337,911
456,440
In over five years
-
53,862
456,440
607,724
GOVERNMENT GRANT & TAX CONSULTANTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 9 -
11
Related party transactions
T
he company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year, Government Grant and Tax Consultants Limited was invoiced
£17,410
(201
9
- £41,
750
) from Anson Consulting LLP (
an entity with previous common directors
). At the year end a debtor balance of £
nil
(201
9
- £
nil
) was outstanding.
During the year, Government Grant and Tax Consultants Limited was invoiced
£22,700
(201
9
- £
42
,500) from Ramesses LLP (an entity
with previous common shareholders
). At the year end an amount of
£nil
(201
9
- £
nil
) was outstanding.
During the year, Government Grant and Tax Consultants Limited was invoiced £
46,800
(201
9
- £
142,428
) from Data Management Support Ltd (an entity with a common director). At the year end a creditor balance of £
nil
(201
9
- £
6,800
) was outstanding.
During the year, Government Grant and Tax Consultants Limited
invoiced £5,927 (2019: £nil) to Experience International Limited, (an entity with previous common directors). At the year end a debtor balance of £nil (2019 - £325,542) was outstanding. The balance was recovered in full during the year.
12
Parent company
The company's immediate parent is Innovation Consulting Group Limited, incorporated in England and Wales.
The registered office of the immediate parent is 2nd Floor Churchill House, 26-30 Upper Marlborough Road, St Albans, Hertfordshire, United Kingdom, AL1 3UU.
2020-09-30
2019-10-01
false
29 March 2021
CCH Software
CCH Accounts Production 2020.310
No description of principal activity
This audit opinion is unqualified
L Hamm
J Penn
S Phillips
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