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...
About Steven Collings
Steve Collings, FMAAT FCCA is the audit and technical partner at Leavitt Walmsley Associates Ltd where Steve trained and qualified.