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Use the Provisions template to determine how movements on provisions are treated for corporation tax. Whether a provision is allowable depends on its type: a specific provision measured in line with accounting standards is generally allowable, whereas a general provision is not. The template lets you classify each provision, tracks the movement, and calculates the adjustment to profit.

Table of contents 

When should I use this template?

Use it where the company has provisions in the accounts and you need to determine how much of the charge (or release) is allowable and how much must be adjusted.

Before you start

A business type must be selected in the Business type section of the Return information template. If none is selected, the template shows a warning and cannot calculate.

Working through each provision

Add a row per provision and complete the columns:

  • Description — identify the provision.
  • Type— a dropdown with three options that drives the tax treatment:
    • Specific — treated as allowable; the movement is not added back.
    • General — treated as disallowable; the P&L movement is added back.
    • Disallowable — treated as disallowable in the same way as a general provision.
  • Liability b/f — the opening provision.
  • P&L / OCI charge / (credit) — the movement recognised in the accounts.
  • (Utilised) – Allowable — utilisation that is allowable for tax.
  • (Utilised) – Disallowable — utilisation that is disallowable.
  • Other — any other movement.
  • Liability c/f — the closing provision.

From these, Silverfin calculates the P&L / OCI adjustment for tax and the utilisation adjustment for tax. For a specific provision no adjustment is made; for a general or disallowable provision the charge is added back, and when the provision is later utilised the corresponding adjustment is made so relief is given at the right time. The movement is reconciled to the P&L analysis, and Silverfin flags any difference.

What flows through to the rest of Corporation Tax?

The tax adjustment on provisions feeds the adjustment to profit for the relevant business type, so disallowable provision movements are added back and allowable amounts are relieved.

What rolls forward next year?

The closing provision (Liability c/f) rolls forward to become next year's Liability b/f. Current-period movement fields clear for the new year.

Frequently asked questions

How do I make a provision allowable or disallowable?

Set the Type dropdown: choose Specific for an allowable provision, or General / Disallowable for a disallowable one. The Type drives whether the movement is added back.

Why split utilisation into allowable and disallowable?

Because the treatment of utilising a provision depends on whether the original provision was allowable. Splitting utilisation ensures the adjustment is correct as the provision is used.

Why is there an unreconciled indicator?

The movement is reconciled to the P&L analysis; a difference means the two do not agree — check the amounts entered and the Type selected.