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Short term timing differences

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See Also

Adjustment of profit | Deferred tax introduction | Employee share acquisition relief | Factors affecting the tax charge | Profit and loss account / Income statement (D schedule)


Select from the following headings:

Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors


Background

This schedule analyses short term timing or temporary differences other than those arising from fixed assets. The schedule is split between trading  and non- trading timing differences. An additional row is inserted on the relevant section of this schedule whenever a schedule is developed in the tax computation that gives rise to a timing difference.

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Developing the schedule

This schedule will be developed as part of the F schedules. The F schedules can be developed from either the Adjustment of profit schedule or the Profit and Loss account by selecting Develop, Other,Tax account ? P&L approach.

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Completing the schedule

Brought forward per accounts/Prior year adjustment

Where detailed disclosure of prior year adjustments are required, two additional columns for the brought forward balances per the accounts and any prior year adjustment can be displayed by setting the flag ?Is detail of pya required?? to ?Yes? on the Tax Account (F). The user is required to enter these brought forward balances manually. In standard files, these columns will remain hidden.

Timing differences

Most relevant numbers will be inserted directly onto this schedule, as and when the appropriate schedules are developed in the tax computation e.g. provisions and reserves or deductible as paid schedules.

Share options

For 2012 files onwards, deferred tax balances in respect of share options will be linked through automatically from the Employee Share acquisition relief.

If amounts need to be allocated to equity they should be manually entered on the Share options- deferred tax amounts to Equity row. These amounts will then be deducted from the Share options ? deferred tax amounts to P&L row. It is important that the share option amounts are entered on to the correct row as the treatment of the share options will be different depending on which of these rows is used. If any adjustments are required to the deferred tax balances, these can be made on the Share option adjustments. Amounts entered on here will also be deducted from the Share options ? deferred tax amounts to P&L row.

The deferred tax movement on the share options will automatically link through to the Factors affecting the tax charge schedule.

Other

The row labelled ?Other? may be used for unusual entries and amounts that are not inserted by standard schedules.

Extra data entry rows may also be inserted if required.

Category of Difference

These selectors allow you to determine the category of the short term timing difference i.e. P&L or Equity. If the selector is changed to Equity, a warning will appear on the Tax account (F) reminding you that additional adjustments are needed on this schedule. The amount attributable to equity must be entered in the Charged/(credited) to reserves column on the Tax account and in the correct row as to which the STTD/Temporary difference relates, e.g. STTD?s-trading (or Temporary differences ? trading for IFRS).

Tax rates

The rates at which the brought forward and carry forward timing difference balances are provided are shown at the bottom of this schedule. These rates can be amended by using the tax rate override cells on the F schedule (Tax account).

Note: To ensure that the layout of this schedule is clear, display formulae are employed to suppress many of the 'zero' amounts.

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Standard sub-schedules

This schedule has no standard supporting schedules.

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Carry forward

 

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Related errors

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