(1) General Information
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The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is Lagmhor Office, Dunkeld, PH8 0AD.
Research and development expenditure is charged to the income statement in the period in which it is incurred. An under claim of repayable R and D Tax credits for the years 2011-2019 has been identified.The value of the eligible R and D related expenses was enhanced by 130% instead of 230% in error. Because HMRC approved the first R and D tax credit claim made on this basis, subsequent R and D tax credit claims were calculated on the same basis. In 2020, all CT600s were resubmitted with the 230% enhancement. HMRC have paid the underclaimed amounts for the last 3 years. A response from HMRC about the years prior to this is awaited. It is probable that HMRC will process the revised CT600s and reasonable to expect the underclaimed amount of £51,270 will be paid: the rationale for this is that the underclaim was made in good faith based on a calculation error recently identified in the correspondence between HMRC and Hadwebutknown Ltd (then called Hao2.eu Ltd) about the first SME R and D claim. The cumulative value of carried forwarded losses arising from this R and D and historic trading losses over the last 10 years which the business can use for future corporation tax liabilities is £192,192.
Website cost
Planning and operating costs for the company's website are charged to the income statement as incurred.
Taxation
Taxation represents the sum of tax currently payable and deferred tax. Tax is recognised in the statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. The company’s liability for current tax is calculated using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Current and deferred tax assets and liabilities are not discounted |
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(2) Statement of compliance
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These individual financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A and Companies Act 2006, as applicable to companies subject to the small companies' regime. |
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(3) Significant Accounting Policies
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Basis of Preparation
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The financial statements have been prepared on the historical cost basis and in accordance with the Companies Act 2006. The presentation and functional currency of the company is pounds sterling. The financial statements are presented in pound units (£) unless stated otherwise. |
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Revenue recognition
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Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met as described below. |
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Sale of goods
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Sales of goods are recognised when the company has delivered the goods to the customer, no other significant obligation remains unfulfilled that may affect the customer's acceptance of the products and risks and rewards of ownership have transferred to them. |
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Rendering of Services
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Rendering of services Revenue from provision of services rendered in the reporting period is recognised when the outcome of a transaction for the rendering of services can be estimated reliably in terms of revenue, costs and its stage of completion of the specific transaction at the end of the reporting period. The stage of completion is determined on the basis of the actual completion of a proportion of the total services to be rendered. When the outcome of a service contract cannot be estimated reliably the company only recognises revenue to the extent of the recoverable expenses recognised. |
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Rental income
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Rental income from operating leases are recognised on a straight-line basis over the term of the relevant lease. Rental Income is included within other income from fixed assets. |
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Interest income
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Interest income is recognised using the effective interest method. |
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Borrowing costs
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All borrowing related costs are included within the statement of income in the period in which they are incurred using the effective interest method. |
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Intangible fixed assets
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Intangible fixed assets (including purchased goodwill and patents) are included at cost less accumulated amortisation. |
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Development costs
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Development costs is stated at cost less accumulated depreciation and any accumulated impairment losses. It is amortised over its estimated life of 10 years using the straight-line method. If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations. |
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Property, plant and equipment
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Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Part of an item of property, plant and equipment having different useful lives are accounted for as separate items.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation is provided to write off the cost less estimated residual value, of each asset over its expected useful life as follows:
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Asset class and depreciation rate |
Land And Buildings |
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Plant and Machinery |
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Short Leasehold Properties |
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Investment Properties |
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Long Leasehold Properties |
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Commercial Vehicles |
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Fixtures and Fittings |
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Equipment |
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Motor Cars |
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Inventories
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Inventories are measured at the lower of cost and net realisable value. Costs of inventories are determined on a first-in-first-out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs necessary to make the sale. |
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Taxation
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Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. |
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Current Tax
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The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the income statement because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
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Employee benefits
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Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
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(4) Critical accounting judgements and key sources of estimation uncertainty
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No judgement
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No significant judgements or estimates have been made in preparation of these financial statements. |
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(5) Employees
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During the year, the average number of employees including director was 2 (2020 : 0) |
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(6) Creditors: Amounts falling due after more than one year
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| | | 2021 | | 2020 | | £ | | £ | | Bank loans and overdrafts | 13,898 | | 17,442 | | | | | Other creditors | 451270 | | 35,000 | | 465,168 | | 52,442 |
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(7) Fixed assets
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Intangible £
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Tangible £
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Totals £
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Cost
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As at 01 April 2020
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-
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23,068
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23,068
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Additions
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400,000
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500
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400,500
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As at 31 March 2021
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400,000
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23,568
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423,568
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Depreciation/Amortisation
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As at 01 April 2020
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-
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14,758
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14,758
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For the year
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-
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3,785
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3,785
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As at 31 March 2021
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-
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18,543
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18,543
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Net book value
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As at 31 March 2021
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400,000
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5,025
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405,025
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As at 31 March 2020
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-
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8,310
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8,310
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(8) Intangible and Tangible Assets notes
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Intangible assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable. As part of its Brexit / sustainability strategy, the business commissioned an independant IP valuation of its intangible assets by IP Pragmatics. These accounts include a reasonable valuation of these intangible assets based on the report by IP Pragmatics. The business has donated a 10 year licence to Autus - the autistic user led charity it helped found in 2014. This donation is intended to enable Autus to continue to increase access to employability and lifeskills support to autistic people of all ages. The business has cofounded / is investing in 2 SMEs to sustain and scale its social purpose and impact related to autistic inclusion and employment: 1) 3DNovations North Ltd (SC661103) based in Scotland which will operate across the UK and internationally under Scottish and UK law and trade regulations. The business has assigned is UK Hao2.eu and 3DNovations trademark and .uk domains to i-deas 3DNovations North Ltd to adapt to Brexit and protect its IP/ social purpose in the UK and internationally. 3DNovations Ltd (08055483), previously registered in England and Wales, has been voluntarily closed down/struck off now that 3DNovations North Ltd has been established. 2) i-Deas 3DNovations Europe Ltd (585334) based in Ireland which will operate at arms length across the EU and internationally under EU law and EU trade regulations. The business has assigned is EU Hao2.eu trademark and .eu domains to i-deas 3DNovations Ltd to adapt to Brexit and protect its IP/ social purpose and values in Europe and internationally. Tangible fixed assets Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis: Plant and Machinery 20% Straight Line Fixtures and Fittings 15% Straight Line |
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