Steve Collings offers a refresher guide to deferred tax rules and considerations for those preparing financial statements.
A UK resident company is chargeable for corporate tax on its profits wherever they arise, other than dividends received from other UK companies, and this liability is accounted for as a current liability – it’s all very straight forward.
The complexities seem to arise when deferred tax appears on the scene. With more and more companies taking advantage of HMRC’s £50,000 Annual Investment Allowance, deferred tax issues may become a material component of a company’s financial statements.
This article looks at the concept of deferred tax and the inherent complexities, as well as addressing some of the more common concerns practitioners...