Company Registration No. 05532587 (England and Wales)
GPC SIPP LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 FEBRUARY 2018
PAGES FOR FILING WITH REGISTRAR
GPC SIPP LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
GPC SIPP LTD
BALANCE SHEET
AS AT
27 FEBRUARY 2018
27 February 2018
- 1 -
2018
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
4
87,995
68,364
Current assets
Debtors
5
2,318,867
1,141,471
Cash at bank and in hand
361,745
316,106
2,680,612
1,457,577
Creditors: amounts falling due within one year
6
(951,741)
(740,003)
Net current assets
1,728,871
717,574
Total assets less current liabilities
1,816,866
785,938
Creditors: amounts falling due after more than one year
7
(33,040)
-
Provisions for liabilities
(6,186)
(6,186)
Net assets
1,777,640
779,752
Capital and reserves
Called up share capital
8
98
98
Share premium account
5,199
5,199
Capital redemption reserve
3
3
Profit and loss reserves
1,772,340
774,452
Total equity
1,777,640
779,752
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial Period ended 27 February 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the Period in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
GPC SIPP LTD
BALANCE SHEET (CONTINUED)
AS AT
27 FEBRUARY 2018
27 February 2018
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 2 January 2019
Ms K Taylor
Director
Company Registration No. 05532587
GPC SIPP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 FEBRUARY 2018
- 3 -
1
Accounting policies
Company information
GPC SIPP Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Guardian House, Capricorn Park, Blakewater Road, Blackburn, Lancashire, BB1 5QR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
These financial statements for the Period ended 27 February 2018
are the
first
financial statements of GPC SIPP Ltd prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 September 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Going concern
There is currently a legal case progressing through the High Court, namely Adams v Carey Pensions. The outcome of that case may have a material bearing on the SIPP industry which may affect the company. Not withstanding the foregoing, the Director is not aware of any material uncertainties affecting the company and considers that the company will have sufficient resources to continue trading for the foreseeable future, supported by rolling cashflow forecasts.
1.3
Turnover
Turnover represents amounts receivable for services net of VAT.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
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:
Land and buildings Leasehold
15% Reducing balance
Computer equipment
33% Straight line
Fixtures, fittings & equipment
15% Reducing balance
Motor vehicles
25% Reducing balance
GPC SIPP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 FEBRUARY 2018
1
Accounting policies
(Continued)
- 4 -
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash at bank and in hand
Cash at bank and in hand
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
GPC SIPP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 FEBRUARY 2018
1
Accounting policies
(Continued)
- 5 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
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.
GPC SIPP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 FEBRUARY 2018
1
Accounting policies
(Continued)
- 6 -
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.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
2
Exceptional costs
2018
2016
£
£
Exceptional payroll costs
-
434,533
Exceptional provision for bad and doubtful debts
1,107,034
-
Loan to connected company written off
70,738
-
1,177,772
434,533
The exceptional provision for bad and doubtful debts is made in respect of trade debtors outstanding at the balance sheet date which remain outstanding at the date of the adoption of the financial statements, net of VAT. The balances embraced within the provision are in respect of invoiced fees relating to the administration of Self Invested Personal Pension Schemes falling within the scope of the pending legal cases referred to at note 9 to the financial statements.
Exceptional payroll costs in the comparative period represent a provision for amounts due in respect of accelerated payment notices issued by HMRC which are subject to an ongoing appeals process.
3
Employees
The average monthly number of persons (including directors) employed by the company during the Period was 15 (2016 - 16).
GPC SIPP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 FEBRUARY 2018
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 31 August 2016
87,427
115,580
203,007
Additions
-
41,807
41,807
At 27 February 2018
87,427
157,387
244,814
Depreciation and impairment
At 31 August 2016
49,993
84,650
134,643
Depreciation charged in the Period
8,423
13,753
22,176
At 27 February 2018
58,416
98,403
156,819
Carrying amount
At 27 February 2018
29,011
58,984
87,995
At 30 August 2016
37,434
30,930
68,364
5
Debtors
2018
2016
Amounts falling due within one year:
£
£
Trade debtors
396,187
507,502
Other debtors
1,922,680
633,969
2,318,867
1,141,471
Included within other debtors is an amount totalling £692,314 in respect of loan monies owed by various companies in a distinct group which are under common control. Recovery of the indebtedness either in full or in part relies upon the disposal of an asset within that group. The timing and recovery proceeds are uncertain. No provision has been made in these accounts against the balance.
6
Creditors: amounts falling due within one year
2018
2016
£
£
Bank loans and overdrafts
1,257
-
Trade creditors
14,655
17,296
Corporation tax
262,144
108,117
Other taxation and social security
647,476
585,226
Other creditors
26,209
29,364
951,741
740,003
GPC SIPP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 27 FEBRUARY 2018
- 8 -
7
Creditors: amounts falling due after more than one year
2018
2016
£
£
Other creditors
33,040
-
8
Called up share capital
2018
2016
£
£
Ordinary share capital
Issued and fully paid
98 Ordinary shares of £1 each
98
98
98
98
9
Financial commitments, guarantees and contingent liabilities
There is currently a legal case progressing through the High Court, namely Adams v Carey Pensions. The outcome of that case may have a material bearing on all SIPP administration providers. Neither the timing nor quantum of any effect can be determined by the Director.
10
Events after the reporting date
On 19 November 2018 a dividend of £1,015,698 was declared and paid by way of a credit to Ms K Taylor's directors loan account.
11
Directors' transactions
Advances or credits have been granted by the company to its director as follows:
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Ms K Taylor -
-
-
878,938
878,938
-
878,938
878,938