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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