A ltd company made a loss of £1,000 last year. The Corp Tax due was therefore nil.
This year the company made a profit of £5,000. In the accounts, the corp tax was £1,000.
All this is fine.
But when doing the Corp Tax Return, the £1,000 loss is bought forward against this years profit and Corp Tax now becomes £800.
In the companies accounts, because the true liability is £800 due to the utilisation of relief on previous years loss, should the accounts have Corp Tax as £800 in the P&L and same in the Corp Tax line of the balance sheet?
Thanks for responses.