11 Tax on loss
The tax charge is based on the loss for the year and represents:
2022 £’000
2021 £’000
Current tax UK corporation tax on loss for the year at 19.0% (2021:19.0%)
(628)
(111) (32)
182
Adjustment in respect of prior periods
Total current tax credit
(446)
(143)
Deferred tax (note 21) Origination and reversal of timing differences
885 134
1,825
Rate changes
(712)
(250)
Adjustment in respect of prior periods
1
Total tax charge for the year
323
971
The tax charge (2021: charge) on the loss for the year is higher (2021: higher) than the standard rate of corporation tax in the UK of 19.0%.The differences are explained below.
2022 £’000
2021 £’000
(9,731) (1,849)
Loss on ordinary activities before taxation Loss for the year multiplied by 19.0% Items not deductible for tax purposes
(3,207)
(609)
2,106
1,607
-
Accelerated capital allowances
825
(68)
Adjustment in respect of prior periods
(31)
134
Rate changes
(712) (109)
-
Other timing differences Total tax charge for the year
323
971
In the 2021 Spring Budget, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25%. This was substantively enacted in 2021 and is therefore used to measure UK deferred taxes in 2022. This increase in corporation tax rate will increase the company’s future tax charge accordingly.
12 Profit and loss account of parent company As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these financial statements. The parent company’s retained loss for the year was £664,000 (2021: loss £366,000).
Whistl Annual Report 2022
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