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The Tax account template brings together the company's current tax and deferred tax positions. It shows the current tax account, the deferred tax account (based on the timing differences and the deferred tax rate), and any unrecognised timing differences, and lets you enter the movements that are not calculated elsewhere.

Table of contents 

When should I use this template?

Use it once the tax calculation and the timing differences are complete, to present the current and deferred tax positions and reconcile the movements on each.

How do I complete the three tables?

Current tax account

For each financial year you can enter:

  • Payments / refunds — corporation tax paid to, or repaid by, HMRC.
  • Acquisitions / disposals / transfers (charge / credit) — movements arising on group changes.
  • Other balance-sheet movements.

The current-year charge comes from the Tax calculation, and these inputs reconcile the account to the corporation tax creditor / debtor in the accounts.

Deferred tax account

The deferred tax balance is driven by the timing differences and the deferred tax rate. For each financial year you can enter the opening position and the movements recognised in different places:

  • (Asset) / liability b/f — the opening deferred tax balance.
  • Prior year P&L (charge) / credit — prior-year adjustments through profit and loss.
  • OCI (charge) / credit — movements recognised in other comprehensive income.

The current-year movement is calculated from the timing differences and rate.

Unrecognised timing differences

This table shows timing differences for which no deferred tax asset or liability has been recognised, so the position is transparent.

Where does the data come from?

  • The current tax charge comes from the Tax calculation (you enter the payments, acquisitions/disposals and other movements here).
  • The deferred tax movement is driven by the Timing differences template with the rate applied, plus any prior year adjustment; disclosure categories come from DT disclosure categories - setup, and permanent/timing analysis from the Tax computation.

What flows through to the rest of Corporation Tax?

The current and deferred tax figures feed the tax disclosures and support the accounts, and tie back to the corporation tax liability from the Tax calculation and the payments recorded in the Tax payments template.

Frequently asked questions

What do I enter, and what is calculated?

You enter the payments/refunds, acquisitions/disposals/transfers and other movements in the current tax account, and the opening deferred tax balance and prior-year / OCI movements in the deferred tax account. The current-year tax charge and the current-year deferred tax movement are calculated from the Tax calculation and the timing differences.

What is the deferred tax account based on?

The timing differences from the Timing differences template, with the deferred tax rate applied.

What are unrecognised timing differences?

Timing differences for which no deferred tax asset or liability has been recognised — shown separately.