Registration number:
ePayMe Limited
for the Year Ended 31 December 2022
ePayMe Limited
Company Information
Director |
Mrs S J Sharpe |
Registered office |
|
Auditors |
|
ePayMe Limited
Strategic Report for the Year Ended 31 December 2022
The director presents her strategic report for the year ended 31 December 2022.
Principal activity
The principal activity of the company is that of providing a compliant range of contracting and payroll services.
Fair review of the business
The business continues to operate as an Outsourced Payroll Provider to the recruitment industry offering compliant umbrella payroll services within the UK.
In common with many businesses in our sector, we recognise the importance of accreditations and have added APSCo Trusted Partner status to our accreditation with Professional Passport.
The business is concentrating on addition transaction volume in the next year and growth organically and winning business by delivering quality service with competitive margins.
Principal risks and uncertainties
The nature of our business means we have to be compliant with the way in which payroll is processed and other legislation as it changes, to meet our clients needs. Professional advice is taken as required and a dedicated teams control compliance throughout the business
The business also uses bespoke insurance cover specifically designed for the industry and has a good working relationship with the broker.
The business focus needs to be to provide solutions to customers who have individuals which will always require payroll services, thereby reducing the ongoing business risk.
Approved and authorised by the
......................................... |
ePayMe Limited
Director's Report for the Year Ended 31 December 2022
The director presents her report and the financial statements for the year ended 31 December 2022.
Director of the company
The director who held office during the year was as follows:
Mr A I Johnston - appointed 16 December 2021
Results and dividends
The results for the year are set out on page 8.
During the year, ordinary dividends were paid amounting to £219,818 (2020: £280,000).
Information included in the Strategic Report
The company in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
Financial instruments
The company does not use any financial instruments to hedge its risks associated with price, credit, liquidity or cash flow. The financial risk management objectives and policies of the company and the exposure of the company to price risk, credit risk, liquidity risk and cash flow risk are not considered material for the assessment of the assets, liabilities, financial position and profit of the company.
Company policy on employment
The hiring of staff is dictated by the level of business. We engage with agencies and job boards for sourcing staff. We regularly liaise with current staff to determine skill set and requirements and offer training and qualifications where required.
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled or incapacitated, every effort is made to ensure their employment with the company continues and that the appropriate training and alterations are arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of all other employees.
Employee involvement
The company policy is to consult and discus with employees, matters likely to affect employees’ interests.
Information about matters of concern to employees is provided and discussed through regular company meetings.
There is no employee share scheme at present but the management have considered the introduction of such a scheme as means of further encouraging the involvement of employees in the performance of the business.
We have recently moved offices and we discussed this with all the staff well in advance of looking for new offices. They were given locations of local large towns with sufficient suitable office space and we looked at areas based on the feedback from the staff.
ePayMe Limited
Director's Report for the Year Ended 31 December 2022
Future developments
We are constantly looking at ways to diversify. In doing so we intend to promote our services to a wider audience within the recruitment sector and focus on areas we are not currently active within. Diversification also comes with a focus towards new ventures, products and services.
Disclosure of information to the auditors
The director has taken steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that she knows of and of which she knows the auditors are unaware.
Approved and authorised by the
......................................... |
ePayMe Limited
Statement of Director's Responsibilities
The director acknowledges her responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ePayMe Limited
Independent Auditor's Report to the Members of ePayMe Limited
Opinion
We have audited the financial statements of ePayMe Limited (the 'company') for the year ended 31 December 2022, which comprise the Statement of Income and Retained Earnings, Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
ePayMe Limited
Independent Auditor's Report to the Members of ePayMe Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
......................................
For and on behalf of
Knoll House
Knoll Road
Surrey
GU15 3SY
ePayMe Limited
Statement of Income and Retained Earnings for the Year Ended 31 December 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
13,359 |
1,834 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Retained earnings brought forward |
280,857 |
219,818 |
|
Dividends paid |
( |
( |
|
Retained earnings carried forward |
523,675 |
280,857 |
ePayMe Limited
Statement of Comprehensive Income for the Year Ended 31 December 2022
2022 |
2021 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
ePayMe Limited
(Registration number: 09921785)
Statement of Financial Position as at 31 December 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
......................................... |
ePayMe Limited
Statement of Cash Flows for the Year Ended 31 December 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade and other debtors |
( |
( |
|
Increase/(decrease) in trade and other creditors |
|
( |
|
Cash generated from operations |
|
( |
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
3,295,267 |
2,822,390 |
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales. The registered company number is 09921785.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the entity, and are rounded to the nearest £.
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions which affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual income. |
Key sources of estimation uncertainty
Useful economic lives of tangible assets: The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. These are amended when necessary to reflect current estimates, based on economic utilisation and physical condition of the assets..
Holiday accrual: The company establishes a reliable estimate of holiday pay accrued during the current year. This estimate is based on a percentage of holiday pay records for live employees at the year end. This percentage is determined by management's best estimates of costs that will be incurred based on legislate and contractual requirements and historical experience of holiday pay claimed by workers. . The carrying amount is £252,517 (2021 -£88,905).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Government grants
Grants are accounted for under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in “other income” within profit or loss in the same period as the related expenditure.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office equipment |
25% reducing balance |
Intangible assets
Costs incurred in the development phase of intangible assets will be expensed in the period incurred.
Cash and cash equivalents
Cash is represented by cash in hand and bank deposits.
Trade debtors
Short term debtors are measured at transaction price, less any impairment.
Trade creditors
Short term creditors are measured at the transaction price.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Financial instruments
Recognition and measurement
Impairment
When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2022 |
2021 |
|
Rendering of services |
|
|
Other revenue |
|
- |
|
|
Revenue is derived from sales made directly to the UK.
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants |
- |
|
Government grant income in the previous year was from the Coronavirus Job Retention Scheme.
Operating profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Auditor's remuneration - The audit of the company's annual accounts |
5,000 |
5,000 |
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Other interest receivable and similar income |
2022 |
2021 |
|
Interest income on bank deposits |
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
- |
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2022 |
2021 |
|
Sales, marketing and distribution |
|
|
Other departments |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Company contributions to money purchase schemes |
|
|
23,358 |
121,771 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2022 |
2021 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2022 |
2021 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Auditors' remuneration |
2022 |
2021 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged/(credited) in the income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax (decrease)/increase from other short-term timing differences |
( |
|
Total tax charge |
|
|
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Deferred tax
Deferred tax assets and liabilities
2022 |
Asset |
Liability |
Capital allowances and depreciation |
- |
|
- |
|
2021 |
Asset |
Liability |
Capital allowances and depreciation |
- |
|
- |
|
Tangible assets |
Office equipment |
Total |
|
Cost or valuation |
||
At 1 January 2022 |
|
|
Additions |
|
|
At 31 December 2022 |
|
|
Depreciation |
||
At 1 January 2022 |
|
|
Charge for the year |
|
|
At 31 December 2022 |
|
|
Carrying amount |
||
At 31 December 2022 |
|
|
At 31 December 2021 |
|
|
Debtors |
Current |
Note |
2022 |
2021 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
- |
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Cash and cash equivalents |
2022 |
2021 |
|
Cash at bank |
|
|
Short-term deposits |
|
|
|
|
Creditors |
Note |
2022 |
2021 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 January 2022 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 December 2022 |
|
|
|
The deferred tax liability relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
100 |
100 |
100 |
100 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
Not later than one year |
|
- |
Later than one year and not later than five years |
|
- |
|
- |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
Interim dividends paid
2022 |
2021 |
|||
Interim dividend of £ |
|
|
||
Analysis of changes in net debt |
At 1 January 2022 |
Financing cash flows |
At 31 December 2022 |
|
Cash and cash equivalents |
|||
Cash |
2,822,390 |
472,877 |
3,295,267 |
|
|
|
|
|
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Related party transactions |
Key management compensation
2022 |
2021 |
|
Salaries and other short term employee benefits |
|
|
ePayMe Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Other transactions with the director |
At the year end the director owed the company £5,711 (2021: £3,180). The loan is unsecured and repayble on demand. Interest has not been charged on the loan.
Summary of transactions with other related parties
Xifos Limited, a related party, invoiced the company £nil (2021: £529) for business cloud and connectivity services. £Nil was owed by ePayMe Limited at the year end (2021: £Nil).
Starfyn Limited, a related party, invoiced the company £7,860 (2021: £12,500) for recruitment services. £Nil was owed by ePayMe Limited at the year end. ePayMe Limited invoiced Starfyn Limited £499,753 and £110,853 (2021: £10,133) was owed to ePayMe Limited at the year end.