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Most profit and loss accounts have a single tax treatment, which you set in the Profit and loss / Other comprehensive income template of the Corporation Tax workflow. Some accounts mix allowable and disallowable amounts, or amounts that belong in different tax schedules. For those, you analyse the account line by line in the Account – Tax analysis account template, and the result is brought together in the Profit and loss – Other comprehensive income – Additional analysis template. This article explains how the three fit together.
Table of contents
- When should I use additional analysis?
- Before you start
- How the three templates work together
- Step 1 – Tick Analyse in the Profit and loss / Other comprehensive income template
- Step 2 – Analyse the account in the Account – Tax analysis template
- Step 3 – Review the Additional analysis template
- What flows through to the rest of Corporation Tax?
- Frequently asked questions
When should I use additional analysis?
Use it whenever one nominal account can't be given a single tax treatment. Typical examples are legal and professional fees that include both allowable advice and disallowable capital-related costs, or a sundry expenses account that includes entertaining.
Before you start
- Select the company's business type in the Business type section of the Return information template. Until a business type is selected, the tax analysis table and the Additional analysis template show a warning instead of a table.
- Make sure the account uses the Account – Tax analysis account template. It's the default account template for profit and loss codes in new periods. For existing periods, you may need to select it on the account.
How the three templates work together
- Profit and loss / Other comprehensive income: tick Analyse on the account.
- Account – Tax analysis: analyse the account row by row in the Tax analysis table.
- Profit and loss – Other comprehensive income – Additional analysis: review what has come through for every analysed account, and the totals by tax treatment.
You can work in either direction. If you start in the account template, Analyse is ticked for you as soon as the Tax analysis table has data.
Step 1 – Tick Analyse in the Profit and loss / Other comprehensive income template
Each account in the template has an Analyse? tick box. Ticking it tells Silverfin that the account's tax treatment comes from its tax analysis rather than a single treatment chosen in this template. Click the account name to go straight to the account.
Analyse is ticked by default where the account's Tax analysis table already has data, unless you've unticked Tax analysis on that account. Your choice rolls forward to the next period.
Warnings next to the account name tell you if something needs attention:
| You'll see | What it means | What to do |
| Please enable the 'Tax analysis' table in the account template and enter data to reconcile. | Analyse is ticked but the account has no Corporation Tax analysis. | Open the account, tick Tax analysis and enter the breakdown. |
| Please ensure the 'Tax analysis' table in the account template is reconciled. | The analysis doesn't add up to the account balance. | Open the account and add or correct rows until the table reconciles. |
| Note: The 'Tax analysis' table in the account template is enabled and has data entered. Please check 'Analyse'… | You've entered an analysis but unticked Analyse, so it isn't being used. | Tick Analyse, or remove the analysis if you don't need it. |
Step 2 – Analyse the account in the Account – Tax analysis template
Tax analysis is ticked by default when you open the account. Because the Corporation Tax workflow is in the file, you see the Corporation Tax version of the table automatically – there is nothing to choose. Next to the heading, the ↳ link takes you to the Additional analysis template.
Accounts analysis sits in its own section above. It's an optional, non-tax breakdown of the account for your working papers and doesn't feed Corporation Tax.
Advanced options
The grey Advanced options panel above the table controls defaults and grouping. A row's own selection always overrides a default.
- Default tax treatment – tick to start every row on a treatment other than allowable (for example Disallowable), then choose it. Allowable isn't offered because, with no default set, rows are allowable anyway.
- Default disallowable tag – pre-selects the tag on disallowable rows. It's ticked by default with a tag suggested from the account, where one exists. Change the tag, or untick it so that each disallowable row needs its own tag.
- Group allowable items – sends all allowable rows to Corporation Tax as one line. When ticked, you can edit the line's description, which defaults to "Allowable expenditure".
- Group disallowable items by tag – sends one line per disallowable tag, described by the tag (for example "Accountancy, legal and professional fees").
For investment businesses, you also see Default allowable tag, which works like Default disallowable tag for allowable management expenses, and Group allowable items by tag in place of Group allowable items. This sends one line per allowable management expenses tag.
Grouping only changes what Corporation Tax receives. The table in the account template always shows every row as you entered it, and totals are still calculated row by row.
The Tax analysis table
| Column | What to enter |
| Item | Your own reference for the row. It stays in your working paper and isn't sent to Corporation Tax. |
| Description | What the amount is. This is the description that appears in Corporation Tax for ungrouped rows. |
| (attachment) | Supporting documents for the row. |
| Amount (£) | The amount of the row. |
| Allowable / Disallowable / Other | How the row is treated for tax. Allowable is selected unless you've set a default. |
| Treatment / iXBRL tag | For Disallowable, choose the disallowable tag. For Other, choose the tax treatment, for example a capital allowances pool or loan relationships. For investment businesses, allowable rows also need an allowable management expenses tag. |
A tag or treatment shows in red until you choose one. If you pick a treatment that needs a particular Corporation Tax schedule, you'll be asked to star that schedule in the workflow.
The total below the table is compared with the account balance in the trial balance. An unreconciled indicator shows any difference.
The Summary
Below the table, the Summary shows the total for each tax treatment, with disallowable amounts (and, for investment businesses, allowable management expenses) broken down by tag. Rows without a tag appear as "Missing tag, please select". Rows set to Other without a treatment appear as "Other – no tax treatment selected". Each has a caution icon so the Summary always adds up to the total. Rows with no tax treatment selected don't flow into the tax computation until you choose one.
Step 3 – Review the Profit and loss – Other comprehensive income – Additional analysis template
This template lists every account with Analyse ticked, with one table per account. Each table shows the lines received from the account template – grouped where you've used the grouping options – and their tax treatment and tag. The account's total is reconciled against its balance. A summary of totals by tax treatment is shown at the top of the template on screen and at the end when exported.
The template stays unreconciled until every analysed account has been completed:
- An account with Analyse ticked but no Tax analysis data shows "Please enter data in the 'Tax analysis' table in the account template or uncheck 'Analyse'…".
- An account with Analyse ticked but Tax analysis unticked shows a warning naming the account.
- A line with no disallowable or allowable management expenses tag shows "Missing tag, please select".
- A line set to Other with no treatment shows "Other – no tax treatment selected".
Fix these in the account template – this template only displays what's there.
What flows through to the rest of Corporation Tax?
Each line flows to the same place a whole account would if you'd given it that tax treatment in the Profit and loss / Other comprehensive income template. Allowable and disallowable amounts go to the trading, property or investment income calculation, and other treatments go to their schedules (for example capital allowances or loan relationships). Disallowable tags and allowable management expenses tags are used for the iXBRL tagging of the computation. Grouped lines arrive as one amount per group, so the computation stays concise.
Frequently asked questions
Why isn't my account showing in the Additional analysis template?
Only accounts with Analyse ticked in the Profit and loss / Other comprehensive income template are listed. Tick Analyse there, or enter data in the account's Tax analysis table and Analyse will be ticked for you.
I've grouped my rows, but the account template still shows every row. Is that right?
Yes. Grouping only condenses what Corporation Tax receives. Your working paper keeps the full detail.
Can I use the standard (non-Corporation Tax) tax analysis table in a Corporation Tax file?
Yes. Tick Enable non-CT tax analysis next to the Tax analysis heading. The account's analysis then feeds the Summary of disallowed expenses instead of Corporation Tax, so only use this if you're not preparing the return in Silverfin. It's already ticked on accounts where Standard Tax Analysis was selected before.
Why is a line showing "Missing tag, please select"?
A disallowable row (or, for investment businesses, an allowable row) has no tag. This can happen if Default disallowable tag is unticked, or if the business type has changed and the saved tag no longer applies. Choose a tag on the row in the account template.
Does grouping change the tax computation?
The amounts are the same – grouping only reduces the number of lines. Totals by tax treatment are calculated from every row.
My company has more than one business type. Does this apply to me?
Hybrid businesses keep the previous layout of the Tax analysis table for now, with an amount for each business type. The Advanced options, grouping and Summary aren't available for hybrid businesses yet.
This article relates to the Profit and loss / Other comprehensive income, Account – Tax analysis and Profit and loss – Other comprehensive income – Additional analysis templates in the UK Corporation Tax workflow. It is provided as guidance and does not constitute tax advice.