Registration number:
New Homes Quality Board Limited
for the Year Ended 30 June 2023
New Homes Quality Board Limited
Contents
Company Information |
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Directors' Report |
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Independent Auditor's Report |
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Balance Sheet |
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Notes to the Financial Statements |
New Homes Quality Board Limited
Company Information
Directors |
Mr Robert William Brighouse Leon Stewart Frederick Livermore Emma Jayne Toms Jacqueline Anne Bennett Joanne Matheson Casey Douglas Neil Cochrane Naomi Anne Connell Gillian Jane Cooper Jennifer Daly Katy Sarah Jordan Curtis Mark Juman Paul Michael Price Steven Archibald Wood |
Registered office |
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Solicitors |
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Bankers |
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Auditors |
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New Homes Quality Board Limited
Directors' Report for the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
Principal activity
The principal activity of the company is an independent not-for-profit body which was established for the purposes of developing a new framework to oversee reforms in the build quality of new homes and the customer service provided by developers.
New Homes Quality Board Limited
Directors' Report for the Year Ended 30 June 2023
At the New Homes Quality Board Limited, we fully understand the magnitude of the consumer's decision to invest in a new home.
The New Homes Quality Board (NHQB) is an independent not-for-profit body which was established for the purpose of developing a new framework to oversee reforms in the build quality of new homes and the customer service provided by developers, in response to the two All Party Parliamentary Group (APPG) reports. We are committed to working with homebuyers, the industry, the central government and devolved administrations to ensure that the whole process of purchasing a home, moving into that home and the after-sales experience is a positive one.
Highlights from 2022/23
• |
Formally launched the Code in England, Scotland and Wales during the autumn of 2022 with support from developers, policymakers and consumers |
• |
Developers registered with NHQB cover approximately 80% of all new homes for private sale across the three nations |
• |
Our first developers activated and became fully registered developers |
• |
All our work continued to be informed by key stakeholders and the work of our consumer, industry and government engagement panels |
• |
Developed a new fee model that sees most developers’ fees reduced by c. 20% |
• |
Designed and implemented the renewal process |
• |
Achieved Stage 1 approval under the Consumer Code Scheme and began our audit program of registered developers |
• |
Worked with the New Homes Ombudsman Service (NHOS) to ensure that both developers and consumers can have confidence in its impartiality and fairness |
• |
On average, NHOS receives over 200 triage contacts every month. As of September 2023, NHOS has resolved two complaints, several cases are currently under review. |
Our key priorities for 2023/24
• |
Extend the new arrangements to Northern Ireland with a launch planned for November 2023. |
• |
Conduct the first formal review of the Code during 2024, noting that an Independent Chair of the Code Council has now been appointed. |
• |
Support developers through the renewal process to retain as many registered developers as possible. At the same time continue to promote the benefits of registration to attract new developers to the scheme |
• |
Ramp up our learning and support for registered developers to help raise standards as a result of Ombudsman cases and consumer research. |
• |
Fully implement our audit and oversight program. |
• |
Work with other codes in the sector to align our codes and eliminate any confusion for consumers |
PRINCIPAL RISKS FACING NHQB
Through our Audit and Risk Committee, the Board and Executive continue to have oversight of all key risks for which the most significant are set out below:
• |
Downturn in the new homes sector. The sector is facing a challenging time and there are various forecasts about how deep and impactful that will be. We have used the sector expertise on our Board to work through various models. These reductions in activity and houses being built have been incorporated into our budget for 2023/24 and this continues to be regularly monitored. |
• |
Renewals. As this is our first round of renewals, there is a risk that some developers may not renew. This risk is greatest with those developers who have applied but not activated and/or those with whom we have had limited engagement. This presents two main potential impacts: financial and reputational. There is a plan in place to take us through the renewals cycle that runs through to summer 2024 and we have established good engagement with the industry. |
• |
The impact of uncertainty in Government Policy. UK politics has seen a turbulent period and we have had a number of Housing Ministers over the past year. Projecting forward this uncertainty looks likely to continue at least into the next election. Without clarity about Government plans for when and how to make the scheme statutory, some developers will be reluctant to sign up. We will continue to meet with civil servants from all administrations on a regular basis. |
New Homes Quality Board Limited
Directors' Report for the Year Ended 30 June 2023
• |
IT & Technology. As with any other business using online platforms, NHQB faces risks concerning cyber security, fraud, GDPR compliance, high reliance on an outsourced IT provider, and dependence on limited IT human resources within the organization. NHQB has developed remedies to mitigate the level of risk associated with IT. Risks and remedies are reviewed and evaluated on a regular basis. |
CORPORATE GOVERNANCE
The NHQB is a private company limited by guarantee without share capital. It is an independent not-for-profit body. Under the constitution, the duty and authority to run NHQB’s affairs is vested in the Board. It was formally constituted as a legal entity in January 2021.
The NHQB Board is made up of a wide range of individuals who each bring a wealth of relevant experience and expertise to support the NHQB in achieving its aims of championing quality new homes and better consumer outcomes.
There are safeguards in place to ensure it remains independent.
The NHQB has a small core management team that runs the day-to-day operation, led by Leon Livermore (CEO) and Emma Toms (COO).
Committees & Panels:
• |
Audit & Risk Committee. The Committee provides oversight of the financial reporting process, the audit process, the company's system of internal controls and compliance with laws and regulations. In addition, the Committee is responsible for assisting the Board in its oversight of risk. |
• |
Remuneration & Nominations Committee. This Committee assists the Board in overseeing remuneration policy and determining each executive director's remuneration package. It is also responsible for overseeing the nomination/succession of Board and Committee members and ensuring that there is an appropriate balance of skills, experience, and independence to discharge duties and responsibilities effectively. |
• |
Performance Assurance Committee. The Committee considers matters relating to the performance of the New Homes Ombudsman Service (NHOS) in relation to all contract matters, performance, and operation of the service. |
• |
Discipline & Sanctions Committee. The Committee investigates whether a breach (of the Code or other disciplinary offence) has occurred by a developer and, if so, what corrective action or disciplinary measures are to be applied. |
• |
Government Engagement Panel. The Panel engages with the Government and the devolved nations on the Code to keep officials updated and allow for discussion on issues relevant to the NHQB’s developing proposals, including the scope and implementation of the New Homes Quality Code and the New Homes Ombudsman. |
• |
Consumer Panel. The Consumer Panel has been established to give customers the opportunity to provide input and feedback on the New Home Quality Code to help shape its evolution. Ultimately it allows customers to have a voice. |
• |
Industry Panel. The Technical Panel advises the Board on all technical matters, such as the sale process, aftercare, construction, finishes or maintenance of a new home, that the Board may be asked to consider as part of the operations of the New Homes Quality Board. |
• |
Code Council. The Code Council is an advisory Council to the Board which deals with matters relating to measuring the success of the New Homes Quality Code and recommending updates and amends to the Code to ensure it remains fit for purpose. |
New Homes Quality Board Limited
Directors' Report for the Year Ended 30 June 2023
NHQB Board
We have a strong, experienced, and diverse Board with a good balance of skills.
The Board’s principal role is to agree on and oversee the implementation of NHQB’s strategy, to ensure that the necessary resources are in place to enable it to meet its objectives and that the financial performance, controls and risk management procedures are suitably robust. The Board is also responsible for ensuring that we maintain an appropriate standard of governance regarding the constitution and the regulatory framework in which we operate.
Board composition
Balance of Executive and Non-Executive Directors:
Chair |
1 |
Independent Non-Executives |
6 |
Industry Non-Executives |
4 |
Other Non-Executive |
2 |
Executive |
2 |
Of which |
|
Male |
8 |
Female |
7 |
Directors of the company
The directors who held office during the period were as follows:
Board member |
Appointed |
Resigned |
Emma Jayne Toms |
01 August 2022 |
|
Leon Stewart Frederick Livermore |
01 April 2022 |
|
Douglas Neil Cochrane |
06 January 2021 |
|
Jackie Anne Bennett |
06 January 2021 |
|
Gillian Jane Cooper |
06 January 2021 |
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Steve Archibald Wood |
06 January 2021 |
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Joanne Matheson Casey |
06 January 2021 |
|
Jennifer Daly |
06 January 2021 |
|
Katy Sarah Jordan |
06 January 2021 |
|
Robert William Brighouse |
01 April 2022 |
|
Naomi Anne Connell |
01 April 2022 |
|
Paul Michael Price |
01 April 2022 |
|
Curtis Mark Juman |
01 April 2022 |
|
Nicholas Boys-Smith |
06 January 2021 |
19 August 2022 |
Paul Howard Smee |
06 January 2021 |
26 July 2022 |
New Homes Quality Board Limited
Directors' Report for the Year Ended 30 June 2023
Board attendance:
The table below provides information on the Board meetings attendance held from 1st July 2022 to 30th June 2023.
Board Meetings |
Audit & Risk Committee Meetings |
Remuneration & Nominations Committee Meetings |
|
Total number of meetings held for the period 1st July 2022 - 30th June 23 |
6 |
3 |
4 |
Board Member |
Attendance per Board Member |
||
Emma Jayne Toms |
6 |
3 |
2 |
Leon Stewart Frederick Livermore |
6 |
3 |
4 |
Douglas Neil Cochrane |
6 |
N/A |
N/A |
Jackie Anne Bennett |
6 |
3 |
4 |
Gillian Jane Cooper |
5 |
N/A |
N/A |
Steve Archibald Wood |
4 |
2 |
0 |
Joanne Matheson Casey |
6 |
N/A |
N/A |
Jennifer Daly |
3 |
N/A |
4 |
Katy Sarah Jordan |
4 |
N/A |
2 |
Robert William Brighouse |
6 |
N/A |
2 |
Naomi Anne Connell |
6 |
3 |
2 |
Paul Michael Price |
6 |
3 |
N/A |
Curtis Mark Juman |
6 |
3 |
N/A |
Nicholas Boys-Smith ( resigned 19th Aug 22) |
0 |
N/A |
N/A |
Paul Howard Smee ( resigned 26th July 2022) |
1 |
N/A |
1 |
Independence of the Directors
All directors make a declaration of their interests to the Board, including any actual or potential conflicts they may have. Those issues are considered by the Board and recorded in a register held for that purpose and kept under review, as appropriate. Should the Board discuss any matter which relates to a declared interest, or which could give rise to a conflict, our approach is that the director concerned may take part in some or all of the discussion of the issue but will leave the meeting when a decision is to be made. Four Non-Executive Directors, Steve Wood, Joanne Casey, Jennie Daly and Katy Jordan, work within the new house-building industry, and their membership of the Board is to ensure an appropriate breadth of skills, experience and industry views is represented.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
New Homes Quality Board Limited
Directors' Report for the Year Ended 30 June 2023
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved and authorised by the
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New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
Opinion
We have audited the financial statements of New Homes Quality Board Limited (the 'company') for the year ended 30 June 2023, which comprise the Balance Sheet, 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 FRS 102 Section 1A '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 30 June 2023 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 directors with respect to going concern are described in the relevant sections of this report.
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.
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Directors' Report has been prepared in accordance with applicable legal requirements. |
New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
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 Directors' 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 directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit; or |
• |
the directors were entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the directors report and from the requirement to prepare a strategic report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error and discussed these with our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context is the Companies Act 2006. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance which might be fundamental to the company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company for fraud. The laws and regulations we considered in this context for the UK operations were the General Data Protection Regulation (GDPR), and employment and health and safety legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to the enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries from management, and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, testing on the posting of journals, testing the application of cut-off and revenue recognition, particularly around membership income; reviewing accounting estimates for biases, reviewing regulatory correspondence with the Companies House and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
55 Ludgate Hill
EC4M 7JW
New Homes Quality Board Limited
(Registration number: 13116068)
Balance Sheet as at 30 June 2023
Note |
2023 |
2022 |
|
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 |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets/(liabilities) |
|
( |
|
Reserves |
|||
Retained earnings |
153,738 |
(250,686) |
|
Surplus/(deficit) |
153,738 |
(250,686) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income and Expenditure Account.
Approved and authorised by the
......................................... |
New Homes Quality Board Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
General information |
The company is a company limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.
The address of its registered office is:
These financial statements were authorised for issue by the
The company registration number is 13116068
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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
The financial statements have been prepared on the basis of the historical cost convention.
Summary of disclosure exemptions
The company has chosen to select partial exemption under FRS102 1A Small Companies Regime Paragraph 3.1B for the exemption of presenting a statement of cashflows.
Going concern
The directors have assessed the going concern status. Their assessment considered the NHQB's strategy, balance sheet and capital requirements. The directors have prepared forecasts for a period in excess of 12 months from the date of approval of these financial statements. These forecasts and projections show that the company is expected to be able to operate within the levels of its current facilities. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Judgements & estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical information and other factors, including expectations of future events that are believed to be reasonable under the circumstances. A material judgement in the accounts is made on the recognition of revenue per the revenue recognition note. |
Revenue recognition
Revenue is measured at fair value of the consideration received or receivable, net of discounts and value added tax.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured.
The income of the organisation comprises registration fees charged to housing developers, invoiced in advance to cover the registration period, and recognised as income accordingly over that period.
However, in the first year 50% of the fee charged relates to completion of the application process, with this part of the fee recognised as income immediately. The remaining 50% represents the registration fee which is recognised as income over period to which it relates.
New Homes Quality Board Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Tax
The main objective of the company’s business is for the public benefit to reform the quality of the development of new homes. This activity is not carried on with a view to creating a profit as enshrined in the articles and the activity does not meet any other of the commonly established badges of trade as set out in Business Income Manual BIM20200.
To perform the main company objective, NHQB receives its main income in the form of developers’ fees.
NHQB's Corporation Tax Liability has been calculated based on the following approach:
Income from developers’ fees is treated as non-trading activity and exempt from corporation tax.
Other income which is not income from developers’ fees (income from accredited suppliers and interest received) will be subject to corporation tax.
Tangible assets
Tangible assets are stated in the balance sheet 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 |
33.33% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. The company subsequently considers the recoverable value of the trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at transaction price, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income and expenditure account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
New Homes Quality Board Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Provisions
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged to the profit and loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
Leases
Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the term of the lease.
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.
Website and CRM development costs
The board consider costs incurred in the creation and ongoing development of the organisation's website and CRM system to be expenditure and have opted not to capitalise and amortise such costs.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
New Homes Quality Board Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Tangible assets |
Office equipment |
Total |
|
Cost or valuation |
||
At 1 July 2022 |
|
|
Additions |
|
|
At 30 June 2023 |
|
|
Depreciation |
||
At 1 July 2022 |
|
|
Charge for the year |
|
|
At 30 June 2023 |
|
|
Carrying amount |
||
At 30 June 2023 |
|
|
At 30 June 2022 |
|
|
Debtors |
Current |
2023 |
2022 |
Trade debtors |
|
|
Prepayments |
|
|
Other debtors |
|
- |
|
|
Creditors |
Creditors: amounts falling due within one year
2023 |
2022 |
|
Due within one year |
||
Trade creditors |
|
|
Taxation and social security |
|
|
Accruals and deferred income |
|
|
Other creditors |
|
|
|
|
New Homes Quality Board Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
2023 |
2022 |
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Non-current loans and borrowings |
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Bank borrowings |
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Related party transactions |
Other transactions with directors |
Jennifer Daly, a common director of Taylor Wimpey and Home Builders Federation.
Katy Jordan, common director of Home Builders Federation.
Home Builders Federation loaned £250 000 interest free to NHQB. Loan remains outstanding at the end of accounting period.
Transaction relevant to Steven Wood, a common director of National House Building Council.
National House Building Council loaned £750 000 to NHQB in form of sterling term loan facility. Interest accrues from day to day from relevant utilisation date at a rate of 2.5% per annum.
Loan remains outstanding at the end of accounting period.
During accounting period, interest has been paid for period 24th Sept 2021-31st March 2023, £24,332.19. Interest of £4,674.66 for period 1st Apr -30th June 2023 has been accrued.