User Roles AdminStaff contributor ✗External contributor ✗Pulse user 

The Tax reconciliation template produces the reconciliation of the tax charge — explaining the difference between the tax that would arise on the accounting profit at the standard rate and the actual tax charge for the period. This is the reconciliation commonly disclosed in the accounts.

Table of contents 

When should I use this template?

Use the template once the tax calculation and the tax computation are complete, to explain the effective tax charge for disclosure in the accounts.

How the analysis works

The template starts from the profit before tax multiplied by the standard corporation tax rate, then lists the reconciling items — for example the effect of permanent differences, the impact of different tax rates, prior year adjustments and other items — to arrive at the actual tax charge. Where an item needs explanation, you can add an additional explanation.

Where the data comes from

The tax reconciliation is built from figures elsewhere in the workflow:

  • profit before tax and the standard-rate starting point from the Profit and loss / OCI analysis;
  • the actual tax charge from the Tax calculation and the permanent/timing analysis in the Tax computation;
  • deferred tax movements from the Timing differences and Tax account templates; and
  • the prior year adjustment from that template, with disclosure categories taken from DT disclosure categories - setup.

What flows through to the rest of Corporation Tax?

The tax reconciliation supports the tax disclosures and the accounts. It uses the tax charge and prior year adjustment figures from the wider workflow, so the reconciliation ties back to the computation.

Frequently asked questions

What does the reconciliation explain?

The difference between the tax expected on the accounting profit at the standard rate and the actual tax charge, item by item.

Where do the figures come from?

From the tax calculation, tax computation and prior year adjustment, which feed the reconciliation.