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The Timing differences template gathers the timing differences from across the workflow and calculates the movement on each, which forms the basis of the deferred tax provision. It draws on the schedules that give rise to timing differences — for example capital allowances versus depreciation, provisions, pensions and intangibles — and analyses them under the deferred tax categories.

Table of contents 

When should I use this template?

Use it after the income, adjustment and capital allowance schedules are complete and the deferred tax categories have been set up, to bring the timing differences together for the deferred tax calculation.

Before you start

Set up the categories in the DT disclosure categories - setup template, and complete the schedules that generate timing differences (for example the tangible and intangible fixed asset templates, provisions, pensions and the chargeable gains summaries).

How the analysis works

The template reads the relevant amounts from the source templates — including the tangible and intangible fixed asset summaries, provisions, pensions, transfer pricing, unpaid remuneration, the chargeable gains summaries and others — and analyses the timing differences under the categories defined in the set-up sheet. For each category it shows the movement in the period and the balance of the timing difference.

Looking for step-by-step instructions — including how to enter the deferred tax rates and the sign conventions for each row? See How do I prepare the deferred tax / tax disclosures schedules (UK market).

What flows through to the rest of Corporation Tax?

The timing differences feed the deferred tax analysis in the Tax account, where the deferred tax rate is applied to the timing differences to give the deferred tax balance and movement. They also support the tax disclosures.

Where the data comes from

  • The timing differences are gathered from the schedules that generate them — the tangible and intangible fixed asset summaries, provisions, pensions, transfer pricing and the chargeable gains summaries — as classified in the Tax computation.
  • The categories come from DT disclosure categories - setup, the opening position from Opening balances, the deferred tax rate from the Tax calculation, and any prior year adjustment from that template.
  • The results feed the Tax account (deferred tax) and the tax disclosures.

Frequently asked questions

Where do the figures come from?

From the schedules across the workflow that give rise to timing differences — the template gathers them automatically under the deferred tax categories.

How are the categories set?

In the DT disclosure categories - setup template, which defines the categories used here.

What do timing differences feed?

The deferred tax account, where the deferred tax rate is applied to give the deferred tax provision.