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Registration number: OC331198

Prepared for the registrar

Lee Chadwick Solicitors LLP

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2023

 

Lee Chadwick Solicitors LLP

Contents

Limited liability partnership information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 8

 

Lee Chadwick Solicitors LLP

Limited liability partnership information

Designated members

G M Noble

K J Robertson

Members

L Lloyd

M L Prater

M R Sheikh

Registered office

14 Market Square
Witney
Oxon
OX28 6BE

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Lee Chadwick Solicitors LLP

(Registration number: OC331198)
Balance Sheet as at 31 July 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

4

23,895

34,323

Tangible assets

5

13,293

15,358

 

37,188

49,681

Current assets

 

Debtors

6

508,016

526,112

Cash and short-term deposits

 

5,605

369

 

513,621

526,481

Creditors: Amounts falling due within one year

7

(411,238)

(432,796)

Net current assets

 

102,383

93,685

Total assets less current liabilities

 

139,571

143,366

Creditors: Amounts falling due after more than one year

8

(134,571)

(143,366)

Provisions for liabilities

9

(5,000)

-

Net assets/(liabilities) attributable to members

 

-

-

Represented by:

 

   

-

-

Total members' interests

 

Amounts due from members

 

(274,260)

(238,586)

   

(274,260)

(238,586)

For the year ending 31 July 2023 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied to LLPs, relating to small entities.

These financial statements have been prepared in accordance with the special provisions relating to LLPs subject to the small LLPs regime within Part 15 of the Companies Act 2006, as applied to LLPs.

These financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime, as applied to LLPs, and the option not to file the Profit and Loss Account has been taken.

The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.

The financial statements of Lee Chadwick Solicitors LLP (registered number OC331198) were approved by the members and authorised for issue on 31 January 2024. They were signed on behalf of the LLP by:

.........................................
G M Noble
Designated member

 

Lee Chadwick Solicitors LLP

Notes to the Financial Statements for the Year Ended 31 July 2023

1

General information

The place of registration of the LLP is England and Wales under the Limited Liability Partnership Act 2000.

The address of the registered office is:
14 Market Square
Witney
Oxon
OX28 6BE

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Companies Act 2006 and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued January 2017).

Basis of preparation

The LLP is incorporated in England and Wales under the Limited Liability Partnership Act 2000. The address of the registered office is given on the LLP information page. The nature of the LLP's operations and its principal activities are given in the members’ report.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentational currency of Lee Chadwick Solicitors LLP is considered to be pounds sterling, being the functional currency of the primary economic environment in which the LLP operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the LLP's forecasts and projections, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The LLP therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements

In the application of the LLP's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

Lee Chadwick Solicitors LLP

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Key sources of estimation uncertainty

Bad debt provision - Due to the nature of the business, there are high levels of trade debtors at the year end and, therefore, a risk that some of these balances may be irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £1,200 (2022 - £3,000).

Amounts recoverable on contracts - The process of assessing work in progress requires various estimates and judgements to be made. At the year end the members review the time spent on client assignments, along with the level of fixed fee work, and this is used as the basis of the calculation. The carrying amount is £136,868 (2022 - £190,003).

Provision for client claims - the provision is based on a review of potential claims and an assessment for any potential settlements that are considered likely as a result of these. The carrying amount is £5,000 (2022 - £-).

Revenue recognition

Fee income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and exclude VAT. Income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Income in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.

Unbilled income on individual client assignments is included as amounts recoverable on contracts within debtors.

Disbursements
Disbursements are not included in income or expenses but are netted against each other.

Members' remuneration and division of profits

The profits of the LLP are automatically divided among the members in accordance with the agreed profit share arrangements.

A member's share of profit or loss for the year is accounted for as an allocation of profits.

Taxation

The taxation payable on the LLP's profits is the personal liability of the members, although payment of such liabilities is administered by the LLP on behalf of its members. Consequently, LLP taxation is not accounted for in these financial statements. Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members, or are set against amounts due from members as appropriate.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Amortisation

Acquired goodwill is written off in equal instalments over its economic useful life.

Asset class

Amortisation method and rate

Goodwill

5% straight line basis

 

Lee Chadwick Solicitors LLP

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Depreciation method and rate

Fixtures & fittings

20% straight line basis

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the LLP will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the LLP does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the LLP has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Borrowing costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. The commencement of capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

Provisions

Provisions are recognised when the LLP has an obligation at the reporting date as a result of a past event, it is probable that the LLP will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Members' interests

Amounts due to members after more than one year comprise provisions for annuities to current members and certain loans from members which are not repayable within twelve months of the balance sheet date.

Pensions and other post retirement obligations

The LLP operates a defined contribution pension scheme. Contributions are charged in the profit and loss account as they become payable in accordance with the rules of the scheme.

 

Lee Chadwick Solicitors LLP

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Financial instruments

Classification

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and Measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that
occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine
reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised
recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment
been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s
carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Particulars of employees

The average number of persons employed by the LLP during the year was 17 (2022 - 15).

 

Lee Chadwick Solicitors LLP

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

4

Intangible fixed assets

Goodwill
£

Cost

At 1 August 2022 and 31 July 2023

208,569

Amortisation

At 1 August 2022

174,246

Charge for the year

10,428

At 31 July 2023

184,674

Net book value

At 31 July 2023

23,895

At 31 July 2022

34,323

5

Tangible fixed assets

Fixtures and fittings
£

Cost

At 1 August 2022

22,401

Additions

1,890

At 31 July 2023

24,291

Depreciation

At 1 August 2022

7,043

Charge for the year

3,955

At 31 July 2023

10,998

Net book value

At 31 July 2023

13,293

At 31 July 2022

15,358

6

Debtors

2023
 £

2022
 £

Trade debtors

75,940

64,794

Amounts recoverable on contracts

136,868

190,003

Other debtors

3,523

1,491

Amounts due from members

274,260

238,586

Amounts due from former member

-

14,708

Prepayments

17,425

16,530

508,016

526,112

 

Lee Chadwick Solicitors LLP

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

7

Creditors: Amounts falling due within one year

2023
 £

2022
 £

Bank loans and overdrafts

72,409

91,904

Trade creditors

44,503

57,632

Other creditors

190,639

177,411

Accruals and deferred income

19,578

19,266

Taxation and social security

84,109

86,583

411,238

432,796

Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the LLP:

2023
 £

2022
 £

Bank loan and overdraft

72,409

91,904

8

Creditors: Amounts falling due after more than one year

2023
 £

2022
 £

Other creditors

134,571

143,366

Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the LLP:

9

Provisions

Client claims provision
£

Additional provisions

5,000

At 31 July 2023

5,000

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £49,900 (2022 - £58,636).