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Income Tax on SOPLOCI for Ltd Company

[Deleted User] · 2020-11-03 16:02:02

I'm learning accountancy and am confused by the tax figure given in the SOPLOCI. This is not the actual tax that the company pays which we get from the CT comp starting wioth the profit before tax figure and do our additions and deductions to get the taxable figure and multiply by the appropriate rate (12.5% or 25%). The…

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03-11-2020 5:02pm

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[Deleted User]
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I'm learning accountancy and am confused by the tax figure given in the SOPLOCI.

This is not the actual tax that the company pays which we get from the CT comp starting wioth the profit before tax figure and do our additions and deductions to get the taxable figure and multiply by the appropriate rate (12.5% or 25%).

The figure given in the SOPLOCI includes some element of deferred tax by doing ((carrying value - tax written down value) * 12.5%) which I've finally figured out but this does not give the full picture for the amount of income tax given in a companies SOPLOCI.

Is there anyone that could help me get my head around how this figure is calculated?

Thanks.

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