The Dowager
Chatty Member
Right, on the accounts front:
1) Her previous filing was to extend her accounting period to 31 March 2020, these are filed to 5 April 2020. Technically permitted, but wouldn't happen on my watch.
2) The accounts cover the period 22 January 2019 to 5 April 2020 FYI.
3) Alas, they've been prepared on a going concern basis. This is what we'd expect, but it does confirm that she's intending to continue for at least another 12 months. Tattle will need to make some server upgrades to cope with another 365 threads
4) The trademark has a useful economic life of three years, i.e. the estimate is that she can generate economic gains from her trademark for at least three years.
5) Yep her company had £2.1m in the bank as at 5 April 2020.
6) The P&L reserve of £1.6m doesn't mean that was her profit for the year, it means that was the sum of all the ins and outs to the P&L reserve for the period. In simple terms, because she has no opening position, then profit for the year less dividends paid = £1.6m. It can easily be more complicated than this thanks to certain equity instruments, and they do have an accounting policy for equity instruments, but you know what they say.... hear hooves, think horses not zebras.
7) Everyone gets excited by profit and cash, but small company accounts don't need to disclose profit and hers don't. No, where the real cool cats look to is the creditors note, because you can do a crude 'corporation tax creditor x 5' to get a rough estimate of taxable profit*. These accounts don't include a creditors note, to my great annoyance, but total creditors are £764k. Now, given that she doesn't have any stock or significant purchases, we can assume that she doesn't owe much to suppliers. She also has no employees and therefore doesn't have a wages or social security creditor. We can assume a substantial VAT liability (significant inputs, few outputs) and so, whilst there could be other creditors (it would be completely normal to owe her accountants, agents, etc) it wouldn't be unreasonable to assume that the remaining significant chunk of the £764k is corporation tax. Now, I'm certainly not saying that her taxable profit for the year was in the region of £3.8m, because that would suggest she's taken £2.2m as dividends, and even if she did want to spend it on spaghetti hoops I'm reasonably confident she would've been advised not to take as much as that out. That also just doesn't work in terms of sense-checking her cash balance.
So, say the £764k is, for ease, £64k owed on professional fees, £350k VAT and £350k CT. That would put taxable profit in the region of £1.75m, which now makes more sense given that the P&L reserve is £1.6m and she doesn't appear to have taken masses of cash out of the business. That's what, £125k a month?
Now, obviously the above is subject to huge caveats of: 1) Crude estimates and illustrative examples made from a set of small company accounts, which by their nature lack the level of disclosure needed to get a full understanding, 2) My own thoughts and for all you nusty trolls know I could be a second-hand car salesman from Slough with no understanding or training. Nothing should be taken as fact from this post, it's just the ramblings of a mad old woman from a period drama and/or Gary from Slough Deals on Wheels.
What I will say as fact however is: Cry me a fucking river Sophie Hinchliffe. If you didn't think it was worth it, you wouldn't do it.
Not that it matters of course, she hasn't been on here since 2019.
*Alright accounting dorks, there could be more to it than that but for a first year of trading and an asset-light business, I'm going with it.
1) Her previous filing was to extend her accounting period to 31 March 2020, these are filed to 5 April 2020. Technically permitted, but wouldn't happen on my watch.
2) The accounts cover the period 22 January 2019 to 5 April 2020 FYI.
3) Alas, they've been prepared on a going concern basis. This is what we'd expect, but it does confirm that she's intending to continue for at least another 12 months. Tattle will need to make some server upgrades to cope with another 365 threads
4) The trademark has a useful economic life of three years, i.e. the estimate is that she can generate economic gains from her trademark for at least three years.
5) Yep her company had £2.1m in the bank as at 5 April 2020.
6) The P&L reserve of £1.6m doesn't mean that was her profit for the year, it means that was the sum of all the ins and outs to the P&L reserve for the period. In simple terms, because she has no opening position, then profit for the year less dividends paid = £1.6m. It can easily be more complicated than this thanks to certain equity instruments, and they do have an accounting policy for equity instruments, but you know what they say.... hear hooves, think horses not zebras.
7) Everyone gets excited by profit and cash, but small company accounts don't need to disclose profit and hers don't. No, where the real cool cats look to is the creditors note, because you can do a crude 'corporation tax creditor x 5' to get a rough estimate of taxable profit*. These accounts don't include a creditors note, to my great annoyance, but total creditors are £764k. Now, given that she doesn't have any stock or significant purchases, we can assume that she doesn't owe much to suppliers. She also has no employees and therefore doesn't have a wages or social security creditor. We can assume a substantial VAT liability (significant inputs, few outputs) and so, whilst there could be other creditors (it would be completely normal to owe her accountants, agents, etc) it wouldn't be unreasonable to assume that the remaining significant chunk of the £764k is corporation tax. Now, I'm certainly not saying that her taxable profit for the year was in the region of £3.8m, because that would suggest she's taken £2.2m as dividends, and even if she did want to spend it on spaghetti hoops I'm reasonably confident she would've been advised not to take as much as that out. That also just doesn't work in terms of sense-checking her cash balance.
So, say the £764k is, for ease, £64k owed on professional fees, £350k VAT and £350k CT. That would put taxable profit in the region of £1.75m, which now makes more sense given that the P&L reserve is £1.6m and she doesn't appear to have taken masses of cash out of the business. That's what, £125k a month?
Now, obviously the above is subject to huge caveats of: 1) Crude estimates and illustrative examples made from a set of small company accounts, which by their nature lack the level of disclosure needed to get a full understanding, 2) My own thoughts and for all you nusty trolls know I could be a second-hand car salesman from Slough with no understanding or training. Nothing should be taken as fact from this post, it's just the ramblings of a mad old woman from a period drama and/or Gary from Slough Deals on Wheels.
What I will say as fact however is: Cry me a fucking river Sophie Hinchliffe. If you didn't think it was worth it, you wouldn't do it.
Not that it matters of course, she hasn't been on here since 2019.
*Alright accounting dorks, there could be more to it than that but for a first year of trading and an asset-light business, I'm going with it.
