Overriding the Tax Charge in Your Income Statement (Deferred Tax)

Overriding the Tax Charge in Your Income Statement

By default, TinyTax automatically populates the Corporation tax row in your income statement using the corporation tax liability calculated from your CT600. For most companies this is correct, but if your accounts include a deferred tax movement, you may need to adjust this figure so your income statement shows the full tax charge — current tax plus or minus the movement on your deferred tax provision.

How to Override the Tax Charge

1. Open your filing form and scroll to the Profit and Loss section
2. Find the Corporation tax row in the income statement
3. Clear the auto-calculated figure and type the value you want to show — for example, the sum of the current year CT600 liability plus the deferred tax movement
4. An orange indicator will appear showing the CT600-calculated amount, along with a reset button (↺) if you ever want to revert to the auto-calculated figure
5. Continue to preview and submit as normal

Your entered value will be used in the income statement when your accounts are generated. The CT600 return itself is not affected — HMRC always receives the actual corporation tax liability regardless of what appears in the income statement.

Important: Check Your Accounting Standard

FRS 105 (micro-entity accounts): Micro-entities are explicitly exempt from recognising deferred tax under the standard. If TinyTax is generating micro-entity accounts for your company, you should not include deferred tax in the income statement. If you need to account for deferred tax, you may need to file under FRS 102 Section 1A instead — check with your accountant.

FRS 102 Section 1A (small company accounts): Deferred tax is required where it is material. You can enter your combined tax charge (current tax + deferred tax movement) in the Corporation tax row as described above.

TinyTax automatically determines which regime applies based on your company size. If your turnover and balance sheet total are below the micro-entity thresholds, accounts will be prepared under FRS 105. If they exceed the micro-entity thresholds but remain within small company thresholds, accounts are prepared under FRS 102 Section 1A.

Which Regime Is My Company Using?

You can see which standard applies on the filing preview page — it will state either "Micro-Entity Accounts (FRS 105)" or "Small Company Accounts (FRS 102)" on the cover page of your accounts.

Common Questions

Will overriding the tax charge affect my CT600 submission?

No. The CT600 always uses the corporation tax liability calculated by TinyTax — this is not affected by any override to the income statement tax row.

Does the deferred tax asset or liability appear on the balance sheet?

TinyTax does not have a dedicated deferred tax balance sheet field. If your company has a deferred tax asset or liability, you can include it within the Provisions for liabilities line on the balance sheet. Speak to your accountant about the correct presentation for your specific situation.

Can I also override the prior year tax charge?

Yes — the prior year Corporation tax row (the comparative column) works the same way. Clear the auto-populated figure and type your prior year tax charge.