WHISTL ANNUAL REPORT 2022

21 Deferred tax

The deferred tax included in the statement of financial position is as follows:

Company 2022 £’000

Group 2022 £’000

Company 2021 £’000

Group 2021 £’000

391

-

Included in debtors (note 17)

1,161

-

The movement in the deferred taxation account during the year was:

Company 2022 £’000

Group 2022 £’000 1,161

Company 2021 £’000

Group 2021 £’000 2,274

- - - - - -

At 1 January

- - - - - -

203

Profit and loss account movement arising during the period

(1,826)

-

Acquisitions through business combinations

1

(839) (134)

Utilisation of tax losses Changes in tax rate

-

712

At 31 December

391

1,161

Expected net reversal of deferred tax assets and liabilities during 2023:

Group £’000

Company £’000

At 31 December 2022

391

- - -

(1,741) (1,350)

Profit and loss account movement expected during the period

At 31 December 2023

The balance of the deferred taxation account consists of the tax effect of timing differences in respect of:

Company 2022 £’000

Group 2022 £’000

Company 2021 £’000

Group 2021 £’000

(2,894)

- - - -

Capital allowances in excess of depreciation

(2,878)

- - - -

3,239

Tax losses

4,013

46

Short term timing differences

26

At 31 December

391

1,161

Deferred tax assets have been recognised in respect of all corporation tax losses and other temporary differences, giving rise to deferred tax assets, because, based on forecasted future profits and capital budgets, these assets are expected to be recovered. The Group recognised a net deferred tax asset of £391,000 (2021: £1,161,000) relating to reversal of existing differences on tangible fixed assets and corporation tax losses carried forward at 31 December 2022. Management believe that the company will generate sufficient future profits in order to support the recognition of the deferred tax asset.

The company had no deferred tax asset/(liability) at 31 December 2022 and 31 December 2021.

Whistl Annual Report 2022

59

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