Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false2023-01-01Provide legal services to members of the GMB and theCommunication Workers Union.8282falsefalse OC388189 2023-01-01 2023-12-31 OC388189 2022-01-01 2022-12-31 OC388189 2023-12-31 OC388189 2022-12-31 OC388189 2022-01-01 OC388189 c:ComputerEquipment 2023-12-31 OC388189 c:ComputerEquipment 2022-12-31 OC388189 c:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 OC388189 c:CurrentFinancialInstruments 2023-12-31 OC388189 c:CurrentFinancialInstruments 2022-12-31 OC388189 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 OC388189 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 OC388189 c:ReportableOperatingSegment1 2023-01-01 2023-12-31 OC388189 c:ReportableOperatingSegment1 2022-01-01 2022-12-31 OC388189 d:UnitedKingdom 2023-01-01 2023-12-31 OC388189 d:UnitedKingdom 2022-01-01 2022-12-31 OC388189 e:FRS102 2023-01-01 2023-12-31 OC388189 e:Audited 2023-01-01 2023-12-31 OC388189 e:FullAccounts 2023-01-01 2023-12-31 OC388189 e:LimitedLiabilityPartnershipLLP 2023-01-01 2023-12-31 OC388189 2 2023-01-01 2023-12-31 OC388189 e:PartnerLLP1 2023-01-01 2023-12-31 OC388189 e:PartnerLLP2 2023-01-01 2023-12-31 OC388189 c:FurtherSpecificReserve2ComponentTotalEquity 2023-12-31 OC388189 c:FurtherSpecificReserve2ComponentTotalEquity 2022-12-31 iso4217:GBP xbrli:pure

Registered number: OC388189










Trade Union Legal LLP










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
TRADE UNION LEGAL LLP
 

INFORMATION




Designated Members

M J Cordall
GMB & CWU Legal LLP

LLP registered number

OC388189

Registered office

PM House
250 Shepcote Lane
Sheffield
South Yorkshire
S9 1TP

Independent auditors

AAB Audit & Accountancy Limited
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG


 
TRADE UNION LEGAL LLP
 

CONTENTS



Page
Members' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Statement of Financial Position
8
Reconciliation of Members' Interests
9
Statement of Cash Flows
10
Notes to the Financial Statements
11 - 18


 
TRADE UNION LEGAL LLP
 

MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The members present their annual report together with the audited financial statements of Trade Union Legal LLP (the "LLP") for the ended 31 December 2023
 

Principal activities
 
 
The principal activity of the company during the year was the provision of legal services. Trade Union Legal LLP was licenced by the Solicitors Regulation Authority Limited to undertake specified legal activities and commenced trading on 2 June 2014 as an Alternative Business Structure to provide legal services to the members of GMB and the Communication Workers Union.
The financial statements reflect the results of the year ended 31 December 2023 and disclose a loss of £3,151,982 (2022 - loss of £2,043,766).
At 31 December 2023, the business had 6,534 (2022 - 7,400) live personal injury cases operated on a contingent fee basis. The financial statements do not take account of the future income from these cases under FRS102, save for those cases which meet the criteria set out in the accounting policies, as whilst there is a probability that income will accrue on these cases, it cannot be measured accurately at the balance sheet date.
 
 
Designated Members
 
 
The designated members who served the LLP during the year were as follows:
M J Cordall
GMB & CWU Legal LLP
 

 
Policy regarding members' drawings and the subscription and repayment amounts subscribed or otherwise contributed by members
 
 
The LLP's members are not required to contribute any capital to the LLP in accordance with the membership agreement. However, GMB and the Communication Workers Union have agreed to provide working capital and recharged operating costs to the LLP.
 
 
In accordance with the LLP agreement, from time to time the Board may determine the amount of profit to be distributed. In doing so the Board takes into account the future anticipated capital requirements of the business and any drawings are limited to the 'free cash" over and above the future anticipated requirements.
 
 
Members' responsibilities statement
 
 
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
 
 
Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that period.

In preparing these financial statements, the members are required to:
 
select suitable accounting policies and then apply them consistently;
 
make judgements and accounting estimates that are reasonable and prudent;
 
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
 
Page 1

 
TRADE UNION LEGAL LLP
 

MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008)They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
 
Disclosure of information to auditors
 
 
Each of the persons who are members at the time when this Members' Report is approved has confirmed that:

so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and

that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
 

Auditors
 
 
Sagars Accountants Ltd are deemed to be re-appointed under section 487 of the Companies Act 2006.
 

This report was approved by the members on 30 April 2025 and signed on their behalf by:
 
 

M J Cordall

Page 2

 
TRADE UNION LEGAL LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP
 

Opinion
 

We have audited the financial statements of Trade Union Legal LLP (the 'LLP') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Reconciliation of Members' Interests and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the LLP's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern
 

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the LLP's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.


Page 3

 
TRADE UNION LEGAL LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP (CONTINUED)


Other information
 

The other information comprises the information included in the annual report other than the financial statements and our Auditors' Report thereon. The members are responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Matters on which we are required to report by exception
 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, as applied to limited liability partnerships, requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.


Responsibilities of members
 

As explained more fully in the Members' Responsibilities Statement set out on page 1, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.


Page 4

 
TRADE UNION LEGAL LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and work in progress, management override of controls and posting of unusual journals and complex transactions. We discussed these risks with client management, designed audit procedures to test the inclusion and timing of income, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.
The organisation is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified company law, employment law, tax legislation and regulatory compliance as the areas most likely to have such an effect. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the LLP's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members.
Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the LLP to cease to continue as a going concern.
 
Page 5

 
TRADE UNION LEGAL LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP (CONTINUED)


Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Use of our report
 

This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.





James Hunt BA (Hons) MA FCA CTA (Senior Statutory Auditor)
  
for and on behalf of
AAB Audit & Accountancy Limited
 
Statutory Auditor
  
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG

30 April 2025
Page 6

 
TRADE UNION LEGAL LLP
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
7,135,249
7,600,359

Gross profit
  
 
7,135,249
 
7,600,359

Administrative expenses
  
(10,270,671)
(9,627,864)

Operating loss
  
 
(3,135,422)
 
(2,027,505)

Interest receivable and similar income
  
99,991
20,947

Interest payable and similar expenses
  
(116,551)
(37,208)

Loss before tax
  
 
(3,151,982)
 
(2,043,766)

Loss for the year before members' remuneration and profit shares available for discretionary division among members
  
 
(3,151,982)
 
(2,043,766)

Other comprehensive income for the year
  

  

Total comprehensive income for the year
  
(3,151,982)
(2,043,766)

The notes on pages 11 to 18 form part of these financial statements.

Page 7

 
TRADE UNION LEGAL LLP
REGISTERED NUMBER: OC388189

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Current assets
  

Debtors
 11 
13,081,139
14,218,681

  
13,081,139
14,218,681

Creditors: Amounts falling due within one year
 12 
(34,470,683)
(32,456,244)

Net current liabilities
  
 
 
(21,389,544)
 
 
(18,237,563)

Total assets less current liabilities
  
(21,389,544)
(18,237,563)

  

Net liabilities
  
(21,389,544)
(18,237,563)


Represented by:
  

Members' other interests
  

Other reserves including the fair value reserve
  
(21,389,544)
(18,237,563)


Total members' interests
  

Members' other interests
  
(21,389,544)
(18,237,563)

  
(21,389,544)
(18,237,563)


The financial statements were approved and authorised for issue by the members and were signed on their behalf on 30 April 2025.




M J Cordall
Designated member

The notes on pages 11 to 18 form part of these financial statements.

Page 8

 
TRADE UNION LEGAL LLP
 

RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2023




EQUITY
Members' other interests
Other reserves
Total

£
£

Balance at 1 January 2022 
(16,193,797)
(16,193,797)

Loss for the year available for discretionary division among members
 
(2,043,766)
(2,043,766)

Members' interests after profit for the year
(18,237,563)
(18,237,563)

Balance at 31 December 2022
(18,237,563)
(18,237,563)

Loss for the year available for discretionary division among members
 
(3,151,981)
(3,151,981)

Members' interests after profit for the year
(21,389,544)
(21,389,544)

Balance at 31 December 2023 
(21,389,544)
(21,389,544)

The notes on pages 11 to 18 form part of these financial statements.

There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.

Page 9

 
TRADE UNION LEGAL LLP
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(3,151,982)
(2,043,766)

Adjustments for:

Interest paid
116,551
37,208

Interest received
(99,991)
(38,645)

Decrease in debtors
1,137,544
118,029

(Decrease) in creditors
(325,116)
(269,360)

Net cash generated from operating activities before transactions with members

(2,322,994)
(2,196,534)


Cash flows from investing activities

Interest received
99,991
20,947

Net cash from investing activities

99,991
20,947

Cash flows from financing activities

Proceeds from loans from members
2,307,844
1,974,836

Interest paid
(116,551)
(37,208)

Net cash used in financing activities
2,191,293
1,937,628

Net (decrease) in cash and cash equivalents
(31,710)
(237,959)

Cash and cash equivalents at beginning of year
(14,388)
223,571

Cash and cash equivalents at the end of year
(46,098)
(14,388)


Cash and cash equivalents at the end of year comprise:

Bank overdrafts
(46,098)
(14,388)

(46,098)
(14,388)


The notes on pages 11 to 18 form part of these financial statements.

Page 10

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The LLP is registered in England and Wales, registered number OC388189. The address of the registered office is PM House, 250 Shepcote Lane, Sheffield, South Yorkshire, S9 1TP.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

Whilst noting the loss for the year the members have adopted the going concern basis in preparing these accounts after consideration of forecasts and funding of the year ahead together with the Memorandum of Understanding for future funding of the business, assessing the principal risks and having considered the impact of severe but plausible downside scenarios.
Whilst the wider global and national situation evolves regularly, making scenario planning difficult, we have considered a number of impacts on income, profits and cash flows. We have assumed that our operations remain open and that we will continue to be able to service our clients.
Recent years have seen significant inflationary pressures in the wider economy. We anticipate this price pressure to continue with the current global uncertainties and resulting UK and global inflation albeit less so than in the last two years. As the majority of the cost base of the LLP is made up of staff salaries and profit shares/recharges to members and partners, the LLP will continue to work with these stakeholders to navigate the inflationary pressures in the going concern forecast period.
Forecast scenarios have been projected in relation to possible outcomes for timing/drop off of income and other inflationary pressures. The impact of this is that there is a realistic possibility that the business will require funding from its members in the short term in order to meet its liabilities as they fall due. The business is dependent upon the support of its members both in terms of the liabilities due to them and the short-term funding requirements. Letters of support have been received which set out confirmation of continued support in respect of liabilities due and future funding requirements.

 
2.3

Revenue

Revenue recognition represents the amounts recoverable for the services provided to clients under contractual obligations which are performed gradually over time. Amounts due in relation to cases not settled at the balance sheet date and are contingent upon the success of the claim are not recognised until settled. Refer to significant judgements and estimates heading for further clarification on income recognition in relation to current case load.

  
2.4

Accrued income

Accrued income represents work done at the year end where a continuing right to receive income exists (by reference to the settlement of cases noted above) and is valued at the estimated amount recoverable in excess of fees already rendered on account.

Page 11

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the LLP in independently administered funds.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Computer software
-
5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Financial instruments

The LLP only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 12

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.10

Members' remuneration

Members remuneration charged as an expense in the profit and loss account relates to amounts payable under contractual arrangements. The balance of the profit or loss for the year available for discretionary division amongst members is treated as members' equity in the balance sheet until it is formerly allocated to the members when the financial statements are approved after the year end.
Any amount of profit or loss not allocated to members is carried forward in other reserves and classified as equity.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements:
- Recognition of income from cases
Income from cases is recognised when the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the end of the reporting period can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
FRS 102 paragraph 23.15 states that when a specific act is much more significant than any other act, the entity postpones recognition of revenue until the significant act is executed. Therefore amounts due in relation to cases not settled at the balance sheet date and are contingent upon the success of the claim are not recognised until settled.
- Recoverability of disbursements
Disbursements incurred in the pursuit of cases on behalf of clients are recoverable from clients underwritten by third parties (GMB and the Communication Workers Union) and are carried as an asset until recovered from the at fault party or the claimant.
A provision amounting to £1,013,478 (2022: £492,000) is held in the financial statements for future write offs of disbursements, based upon historical evidence of write offs occurring in each period. This is based on an estimated fail rate of 25%.
- Discounting of medical fees
The medical fees financial asset, and associated financial liability, is measured on an amortised cost basis in line with the requirements of basic financial instruments under FRS102. The time between a medical expense being incurred by the LLP and settlement can often span several years. As such the LLP discounts the asset and liability at a market rate of interest based on the expected timing of settlement. The key inputs in this calculation are the expected timing of settlement of asset and the discount rate applied. The LLP has used an expected settlement period of 5 years (2022 - 5 years) and a discount rate of 3.35% (2022 - 3.35%) to value the medical asset and liability. Increasing or decreasing the discount rate by 1% would have the impact of adjusting the asset and liability by £82,334 (2022 - £109,058). There is no impact on the loss for the period other than the grossing up or down of interest income and expense.

Page 13

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Provision of legal services
7,135,249
7,600,359

7,135,249
7,600,359


2023
2022
£
£

United Kingdom
7,135,249
7,600,359

7,135,249
7,600,359



5.


Auditors' remuneration

2023
2022
£
£


Fees payable for the audit of the financial statements
31,375
30,995



Page 14

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,745,292
2,590,953

Social security costs
231,506
221,536

Cost of defined contribution scheme
66,237
60,902

3,043,035
2,873,391


The average monthly number of persons (including members with contracts of employment) employed during the year was as follows:


        2023
        2022
            No.
            No.







Administrative
82
82

There are 4 (2022 - 4) members of key management personnel. All of these individuals are directly employed by PM Law Limited.
The management recharge paid by the LLP to PM Law contributes towards the cost of these individuals providing managerial services.


7.


Information in relation to members

2023
2022
Number
Number


The average number of members during the year was
3
3










8.


Interest receivable

2023
2022
£
£


Other interest receivable
99,991
20,947

99,991
20,947

Page 15

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
116,551
37,208

116,551
37,208


10.


Tangible fixed assets





Computer software

£



Cost or valuation


At 1 January 2023
29,490



At 31 December 2023

29,490



Depreciation


At 1 January 2023
29,490



At 31 December 2023

29,490



Net book value



At 31 December 2023
-



At 31 December 2022
-


11.


Debtors

2023
2022
£
£


Trade debtors
11,797,923
12,485,579

Prepayments and accrued income
1,283,216
1,733,102

13,081,139
14,218,681


Page 16

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
46,098
14,388

Trade creditors
9,133,446
9,212,809

Amounts owed to related parties
23,926,757
21,618,913

Other taxation and social security
610,623
782,294

Accruals and deferred income
753,759
827,840

34,470,683
32,456,244



13.


Analysis of Net Debt




At 1 January 2023
Arising from cash flows
At 31 December 2023
£

£

£

Bank overdrafts

(14,388)

(31,710)

(46,098)

Amounts owed to related parties

(21,618,913)

(2,307,844)

(23,926,757)

Net debt (before members' debt)
(21,633,301)
(2,339,554)
(23,972,855)
Net debt


(21,633,301)
(2,339,554)
(23,972,855)


14.


Pension commitments

The LLP provides defined contribution payments to qualifying individual pension schemes which are administered independently from the LLP. These are charged to the profit and loss in the period to which they relate.

Page 17

 
TRADE UNION LEGAL LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Related party transactions

M J Cordall, a member of the LLP, is also a shareholder in Proddow Mackay Legal Limited, a company which provided support costs valued at £1,822,558 (2022: £1,900,172) for the LLP's benefit and the creditor balance in relation to these costs at the year-end was £86,401 (2022: £220,000).
During the year M J Cordall incurred out of pocket expenses totalling £26,959 (2022: £23,391), which were reimbursed by Trade Union Legal LLP.
The trade unions, GMB and the Communication Workers Union, have control over the LLP through their control over GMB & CWU Legal LLP.
The LLP owed GMB £18,325,403 (2022: £16,030,926) at the year end. Interest charged during the year was £Nil (2022: £Nil) and no interest is charged on the loan balance. During the year, GMB loaned the LLP an additional £2,294,477 (2022: £1,962,227). No management charges were made during the year (2022: £Nil).
The LLP owed the Communication Workers Union £5,601,354 (2022: £5,587,988) at the year end. Interest charged during the year was £13,366 (2022: £12,610) and is charged at a rate of 6% per annum on the loan of £236,135. The interest has been recognised as interest payable in the profit and loss account. The remainder of the balance relates to management charges. No management charges were made during the year (2022: £Nil).
The loans and management charge payables are not secured nor are there any set repayment terms.

Page 18