Corporation Tax

The purpose of the corporation tax template is to calculate an estimated tax charge, which you may choose to account for in Silverfin.

Here's how it works:


1. Select whether you want the calculation to be performed yearly or monthly.

Note: This selection is only relevant to monthly files. Selecting 'monthly' on, for example, an annual file will result in no adaptation of the template.


2. Net profit before tax for year to date

This value is automatically calculated, as the relevant nominal accounts are automatically pulled in using the #.

You can, however, choose to deselect nominal accounts or overwrite the value entirely.


To deselect a nominal account, simply click the # and drag and drop the relevant account/s to the right hand side:


To overwrite the auto-populated value, click the value and you will be able to edit it.

Before:

After:


3. Depreciation

This value is automatically calculated, as the relevant nominal accounts are automatically pulled in using the #.

You can, however, choose to deselect nominal accounts or overwrite the value entirely (see above).


4. Amortisation

This value is automatically calculated, as the relevant nominal accounts are automatically pulled in using the #.

You can, however, choose to deselect nominal accounts or overwrite the value entirely (see above).


5. Additional input fields for 'Disallowable items'

You can either key these in manually, or select the relevant nominal accounts using the #. 

Note: if you have used the disallowed expenses account template, refer to the 'Summary of Disallowed Expenses' template for details of the disallowable items. See this article for further guidance.


6. Capital allowances

Enter the details of any capital allowances that are applicable to the period in question.

You can either key these in manually, or select the relevant nominal accounts using the #. 


7. Tax losses

Enter the details of any tax losses that have arisen. 

You can either key these in manually, or select the relevant nominal accounts using the #. 


8. Additional input fields for 'Other adjustments'

You can either key these in manually, or select the relevant nominal accounts using the #. 


9. Tax rate

This is a default % based on the tax rate applicable to the country selected for your client file (upon setup). It can, however, be overwritten.


10. Tax charge to date

This value is automatically populated, as the relevant nominal account is automatically pulled in using the #.

You can, however, choose to deselect nominal accounts or overwrite the value entirely (see above).


11. Adjustment required

The proposed adjustment is based on the difference between the 'Estimated tax charge' calculated in the template and the 'Tax charge to date' per the underlying bookkeeping system.


You may then choose to post an adjustment to take this calculated difference into account. This article provides guidance on posting adjustments in Silverfin.

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