Reconciliation of Total Tax Charge for the Period

This client screen is used for Limited Companies.

It can be found in:

Edit |Data Screens |Notes to Financial Statements | Profit and Loss Items | Taxation | Reconciliation of Total Tax Charge for Period

• The profit figure entered at the top of the screen must equal the calculated profit figure on the face of the Profit and Loss Account.

Once this figure has been multiplied by the rate of corporation tax (the rate used in the corporation tax return) the calculated tax charge is shown in the grey box at the bottom of the screen. This must be reconciled to equal the total current tax charge per the trial balance.

Accounts 442 to 449 if using the ELTD chart

Reconciliation of the Tax Charge

The following fixed description fields have been provided to allow entering effects of tax assessed for the year which cause differences to standard rate of corporation tax.

Effects of:

• Expenses not deductible for tax purposes
• Income not taxable for tax purposes
• Capital allowances in excess of depreciation*

* Where a positive balance is entered, this will appear as Depreciation in excess of capital allowances

Utilisation of tax losses

Adjustments to tax charge in respect of previous periods      

To reconcile the taxable results and accounting results, items may need to be entered in the freeform fields to explain the differences.

Examples are. :

• Rollover relief on profit on disposal of property
• Higher tax rates on overseas earnings

These examples are taken from the Reconciliation of Tax Charge screen in Business Tax.

In Business Tax go to:

Edit | Deferred Tax | Reconciliation of Tax Charge

iXBRL only

The fixed description fields provided within this screen will automatically be tagged when generating iXBRL accounts.

Freeform entries will need to be manually tagged by the user.

Reports

Use this option to view or print any report without leaving this screen.

IRIS will return to the Factors affecting tax charge for period screen when you exit the report option.

To view the notes only enter NOT in the Report/Document field.

This screen will be displayed automatically during the auto-pilot routine.