Limited Liability Partnership Registration No. OC370001 (England and Wales)
NAYLOR SOLICITORS LLP
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
NAYLOR SOLICITORS LLP
CONTENTS
Page
Statement of financial position
1 - 2
Reconciliation of members' interests
3 - 4
Notes to the financial statements
5 - 10
NAYLOR SOLICITORS LLP
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
4
5,498
1,732
Current assets
Trade and other receivables
5
317,081
387,750
Cash and cash equivalents
350,700
148,637
667,781
536,387
Current liabilities
6
(345,604)
(239,873)
Net current assets
322,177
296,514
Total assets less current liabilities
327,675
298,246
Non-current liabilities
7
(109,281)
(154,987)
Net assets attributable to members
218,394
143,259
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
218,294
143,159
Members' other interests
Members' capital classified as equity
100
100
218,394
143,259
Total members' interests
Loans and other debts due to members
218,294
143,159
Members' other interests
100
100
218,394
143,259

The members of the limited liability partnership have elected not to include a copy of the income statement within the financial statements.

NAYLOR SOLICITORS LLP
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2022
31 March 2022
- 2 -

For the financial year ended 31 March 2022 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 19 August 2022 and are signed on their behalf by:
19 August 2022
Mr J R Naylor
Designated member
Limited Liability Partnership Registration No. OC370001
NAYLOR SOLICITORS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2022
£
£
£
£
Members' interests at 1 April 2021
100
143,159
143,159
143,259
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
368,972
368,972
368,972
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
100
512,131
512,131
512,231
Drawings
-
(293,837)
(293,837)
(293,837)
Members' interests at 31 March 2022
100
218,294
218,294
218,394
NAYLOR SOLICITORS LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2021
£
£
£
£
Amounts due to members
133,262
Amounts due from members
(35,102)
Members' interests at 1 April 2020
100
98,160
98,160
98,260
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
253,359
253,359
253,359
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
100
351,519
351,519
351,619
Drawings
-
(208,360)
(208,360)
(208,360)
Members' interests at 31 March 2021
100
143,159
143,159
143,259
NAYLOR SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
1
Accounting policies
Limited liability partnership information

Naylor Solicitors LLP is a limited liability partnership incorporated in England and Wales. The registered office is Warwick House, 25-27 Buckingham Palace Road, London, SW1W 0PP.

 

The limited liability partnerships' principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together 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 limited liability partnership. Monetary amounts 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.

1.2
Going concern

The members accept that the current, exceptional and ever changing, economic climate will present challenges to the partnership during 2023 and there remains uncertainty as to how this will affect the results of the partnership for the forthcoming financial year. Notwithstanding this, the members are confident the partnership has adequate resources to withstand the challenging period ahead and to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover comprises revenue recognised by the LLP in respect of legal services supplied, exclusive of Value Added Tax. Revenue is recognised in the period that the services are provided.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

NAYLOR SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
1.5
Property, plant and equipment

Property, plant and equipment 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:

Fixtures, fittings & equipment
25% straight line
Computer equipment
25% straight line

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 recognised in the income statement.

1.6
Impairment of non-current assets

At each reporting period end date, the limited liability partnership 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 limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.8
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

NAYLOR SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 7 -
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 limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including bank loans, trade and other payables, 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 payments 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.9
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 non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.10
Retirement benefits and post retirement payments to members

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

NAYLOR SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 8 -
1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Coronavirus Job Retention Scheme

 

The Coronavirus Job Retention Scheme (CJRS) results in cash payments from the government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer).

 

The CJRS grant is recognised under the accrual model, and is recognised as income on a systematic basis over the periods in which the LLP recognises the related costs for which the grant is intended to compensate. As such the income from the grant is recognised on a straight line basis over the furlough period for each relevant employee.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Provision against trade debtors & work in progress

In making their judgment and providing an estimate at the year end, the members considered the likelihood that trade debtors and work in progress would be recovered.

 

The members applied their judgement to those balances standing at the year end to ensure that a provision was made against any uncertain balances. In arriving at a suitable provision, regard was given to the age profile of the debt and/or work in progress and an assessment was made by the members based on the particular circumstances of each matter.

NAYLOR SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
3
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2022
2021
Number
Number
Total
11
11
4
Property, plant and equipment
Plant and machinery etc
£
Cost
At 1 April 2021
4,175
Additions
6,381
At 31 March 2022
10,556
Depreciation and impairment
At 1 April 2021
2,443
Depreciation charged in the year
2,615
At 31 March 2022
5,058
Carrying amount
At 31 March 2022
5,498
At 31 March 2021
1,732
5
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Trade receivables
203,030
292,801
Other receivables
24,619
24,619
Prepayments and accrued income
89,432
70,330
317,081
387,750
NAYLOR SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
6
Current liabilities
2022
2021
£
£
Bank loans
37,500
9,375
Trade payables
61,966
71,404
Other taxation and social security
141,325
107,242
Other payables
62,436
42,352
Accruals and deferred income
42,377
9,500
345,604
239,873
7
Non-current liabilities
2022
2021
£
£
Bank loans and overdrafts
103,125
140,625
Other payables
6,156
14,362
109,281
154,987

During the prior year, LLP received government support under the Coronavirus Business Interruption Loan Scheme. The loan of £150,000 was drawn down in December 2020 and is due for repayment in full in 2025. Interest accrues on a monthly basis at 2.5%, and the loan is secured by a fixed and floating charge over the assets of the LLP.

8
Loans and other debts due to members

Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.

9
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
Within one year
89,183
88,807
Between two and five years
71,680
150,992
160,863
239,799
2022-03-312021-04-01false19 August 2022CCH SoftwareCCH Accounts Production 2022.200OC3700012021-04-012022-03-31OC3700012022-03-31OC370001bus:PartnerLLP22021-04-012022-03-31OC3700012020-04-012021-03-31OC370001bus:LimitedLiabilityPartnershipLLP2021-04-012022-03-31OC370001bus:SmallCompaniesRegimeForAccounts2021-04-012022-03-31OC370001bus:FRS1022021-04-012022-03-31OC370001bus:AuditExemptWithAccountantsReport2021-04-012022-03-31OC370001bus:FullAccounts2021-04-012022-03-31xbrli:purexbrli:shares