The director has considered the prospect of the business for the next twelve months and beyond. The additional tax payment and interest potentially due to HMRC and included in last year's going concern assessment for the use of an Alchemy Scheme by the company in the capacity of an employer has now materialised and £223,561 plus £4,210 interest is payable to HMRC by the company. The company has since paid £125,200 towards this and has agreed a payment plan with HMRC so that the remaining settlement amount will be repaid in full by 06 October 2022.
As at 31 January 2021 the company held a net asset position of circa £97,000 including a bank balance of £70,000. On assessment of the above, a consideration of the company’s current net asset position and an expectation of an upturn in performance for the coming year in addition to a pledge of financial assistance from the director should it be required, the director does not anticipate the above or any other event to pose a liquidity issue for the company. As a result, the director deems it appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.