Deferred tax and Corporation Tax

Quick check of reasonableness of the income tax charge (at Main Rate of corporation tax):

Gross result from the profit and loss account
we adjust permanent differences for the period (permanently non-tax deductible expenses are added and non-taxable income is deducted)
thus we obtain the "nominal taxation base" to be multiplied by "minus 24%",
which generates the tax at nominal rate If the actual tax = tax at the nominal rate, the risk of error is low

Reasons for the difference

If the actual tax - tax at the nominal rate, the risk of error is high unless the following have been taken into account:
valuation adjustments in the opening balance or closing balance (e.g. unrecognised deferred asset related to tax losses)
adjustment to Corporation Tax for previous years recognised in the current financial year
a part of deferred tax directly in revaluation reserve
If none of the above and if not small profits rate shall be applied, errors are probable in the calculation in Corporation Tax or deferred tax in the opening balance or closing balance (some temporary differences missing, incorrect sign of a temporary difference, arithmetical errors)