ABSTRACT
References to ‘taxation’ in company accounts nearly always mean ‘corporation tax’ on profits. The balance sheet includes social security and other taxes owing (including deductions from employees’ wages) under ‘Creditors due within one year’, possibly combined with other creditors. (The notes show social security taxes owing separately.)
Profit and loss account The notes analyse the total tax expense for the year between:
1 UK corporation tax (with deferred tax noted separately) 2 less: double tax relief 3 overseas tax 4 tax related to income from associates.
