LEGAL UK SERVICES LTD
Filleted Accounts
31 December 2022
Registered number
10087894
LEGAL UK SERVICES LTD
Registered number: 10087894
Balance Sheet
as at 31 December 2022
Notes 2022 2021
£ £
Fixed assets
Intangible assets 3 25,057 23,837
Current assets
Work in progress 1,552,348 -
Debtors 4 177,946 232,106
Cash at bank and in hand 437,131 65,307
2,167,425 297,413
Creditors: amounts falling due within one year 5 (857,275) (1,098,557)
Net current assets/(liabilities) 1,310,150 (801,144)
Total assets less current liabilities 1,335,207 (777,307)
Creditors: amounts falling due after more than one year 6 (4,165,022) -
Net liabilities (2,829,815) (777,307)
Capital and reserves
Called up share capital 100 100
Profit and loss account (2,829,915) (777,407)
Shareholders' deficit (2,829,815) (777,307)
- -
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Approved by the board on 20 October 2023
M J Lee
Director
LEGAL UK SERVICES LTD
Notes to the Accounts
for the year ended 31 December 2022
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). The company has adopted pound sterling as the reporting currency.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets - Software Licenses
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. Software Licenses are amortised evenly over their expected useful life of 4 years. The cost of any upgrades to the software is written off to the profit and loss account in the year expensed.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Going concern
COVID-19 is not expected to have a significant impact on the entity. Management expects that COVID-19 might have some impact, though not significant, for example in relation to expected future performance and the life cycle of some cases.

However, at the date of approving these financial statements, the company is still in the process of establishing itself in the market and generating income from the marketing activity undertaken to date.

The company has built up a database of clients which the company is confident will generate leads, and subsequent claims from which the company earns its income.

The company has a loan facility which is in the process of being repaid, and for which negotiations are ongoing to formalise a repayment plan. Facilities have been agreed with another lender which will fund the company’s activity going forward and further informal facilities have been agreed with a separate funder.

The directors have prepared projections which incorporate their assumptions as to the income that can be achieved, the costs that will be incurred and the cash inflows/outflows from financing.

Whilst the directors believe that the company will be able to continue to operate and meet its obligations over the next 12 months, this will depend upon the company achieving the income, agreeing repayment terms with the lenders, and being able to draw down funds from the agreed facility.

Based on the above, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Judgements and key sources of estimation uncertainty
In the course of preparing the financial statements, no judgements have been made in the process of applying the company's accounting policies, other than those involving estimations that have had a significant effect on the amounts recognised in the financial statements.

In the application of the company’s accounting policies, the directors 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.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2022 2021
Number Number
Average number of persons employed by the company 38 29
3 Intangible fixed assets £
Software Licenses:
Cost
At 1 January 2022 36,950
Additions 13,944
At 31 December 2022 50,894
Amortisation
At 1 January 2022 13,113
Provided during the year 12,724
At 31 December 2022 25,837
Net book value
At 31 December 2022 25,057
At 31 December 2021 23,837
Software Licenses are being written off in equal annual instalments over their estimated economic life of 4 years.
4 Debtors 2022 2021
£ £
Trade debtors 92,922 149,367
Other debtors 85,024 82,739
177,946 232,106
5 Creditors: amounts falling due within one year 2022 2021
£ £
Trade creditors 507,437 83,615
Taxation and social security costs 265,650 252,059
Other creditors 84,188 762,883
857,275 1,098,557
6 Creditors: amounts falling due after one year 2022 2021
£ £
Other creditors 4,165,022 -
7 Pension commitments
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the profit and loss when due.
8 Other information
LEGAL UK SERVICES LTD is a private company limited by shares and incorporated in England. Its registered office is:
Lynnfield House
Church Street
Altrincham
Cheshire
WA14 4DZ
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