Insurance Thinkers Limited - Period Ending 2020-03-31

Registration number: 09720091

Insurance Thinkers Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2020

Insurance Thinkers Limited

(Registration number: 09720091)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Tangible assets	5	1,049	1,235
Current assets
Debtors	6	1,500	-
Cash at bank and in hand		67,359	59,625
		68,859	59,625
Creditors: Amounts falling due within one year	7	(5,074)	(7,658)
Net current assets		63,785	51,967
Total assets less current liabilities		64,834	53,202
Deferred tax liabilities	4	(199)	(210)
Net assets		64,635	52,992
Capital and reserves
Called up share capital		10	10
Profit and loss account		64,625	52,982
Total equity		64,635	52,992

For the financial year ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

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

Approved and authorised by the Board on 15 September 2020 and signed on its behalf by:
 

Mr D W Smith Director

The notes on pages 2 to 5 form an integral part of these financial statements.
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Insurance Thinkers Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
North Barn
St Kenelms Road
Romsley
Halesowen
B62 0NF

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' and the Companies Act 2006.

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

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Insurance Thinkers Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Asset class	Depreciation method and rate
office equipment	25 % Reducing balance

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 debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

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
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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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Insurance Thinkers Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2020  No.	2019 No.
Average number of employees	2	2

4

Deferred tax

Deferred tax assets and liabilities

2020	Liability £
Difference between accumulated depreciation and capital allowances	199

2019	Liability £
Difference between accumulated depreciation and capital allowances	210

5

Tangible assets

	Furniture, fittings and equipment  £
Cost
At 1 April 2019	2,149
Additions	159
At 31 March 2020	2,308
Depreciation
At 1 April 2019	914
Charge for the year	345
At 31 March 2020	1,259
Carrying amount
At 31 March 2020	1,049
At 31 March 2019	1,235

6

Debtors

	2020  £	2019  £
Trade debtors	1,500	-

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Insurance Thinkers Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

7

Creditors

Creditors: amounts falling due within one year

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	8	438	41
Accrued expenses		1,500	1,500
Corporation tax liability		3,136	6,117
		5,074	7,658

8

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Directors' loan	438	41

9

Related party transactions

Summary of transactions with other related parties

At the year end, the company owed Mr D W Smith and Mrs J A Smith £438 (2019: £41) in the form of a directors' loan account. The loan is unsecured, interest free and repayable on demand.
 

10

Non adjusting events after the financial period

The worldwide outbreak of the virus causing COVID-19 represents a significant event since the end of the financial period. The directors have considered the impact on going concern, concluding that the going concern basis remains an appropriate basis of preparation for these financial statements. COVID-19 is considered to be a non-adjusting post balance sheet event and therefore has not been taken into account in preparing the statement of financial position as at 31 March 2020.

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