The tax credit for the year is higher (2020: lower) than the standard rate of corporation tax in the UK. The differences are explained below:
|
2021 £’000 |
2020 £’000 |
|
|
Loss on ordinary activities before tax |
(1,433) |
(1,733) |
|
(1,433) |
(1,733) |
|
|
Loss on ordinary activities before tax multiplied by the effective rate of corporation tax in the UK of 19% (2020: 19%) |
(272) |
(330) |
|
Effect of: |
||
|
Expenses not deductible for tax purposes |
22 |
157 |
|
Adjustment in respect of R&D tax credits |
(191) |
(153) |
|
Effect of movement in deferred tax rate |
27 |
(80) |
|
Utilisation of losses not previously recognised for tax purposes |
(170) |
(19) |
|
Deferred tax not recognised on losses carried forward |
440 |
20 |
|
Adjustments in respect of prior years |
(94) |
34 |
|
Differences in tax rates applicable to overseas subsidiaries |
(70) |
123 |
|
Total credit for year |
(308) |
(248) |
The relevant deferred tax balances have been measured at 19% for the current year-end, being the tax rate enacted by the reporting date (2020: 17%).
In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate would increase to 25%. As the proposal to change the rate had not been substantively enacted at the balance sheet date, its effects are not included in these financial statements. However, it is likely that the overall effect of the change, had it been substantively enacted by the balance sheet date, would be to increase the deferred tax charge for the period of
£71,500 and to increase the deferred tax liability by £71,500.
Intangible assets including goodwill
|
Goodwill £'000 |
Brands £’000 |
Customers and related contracts £’000 |
Software £’000 |
Development costs £’000 |
Website costs £’000 |
Intellectual property £’000 |
Total £’000 |
|
|
Cost |
||||||||
|
At 1 February 2020 |
17,291 |
452 |
4,579 |
6,487 |
16,932 |
30 |
66 |
45,837 |
|
Additions |
- |
- |
- |
75 |
2,039 |
- |
6 |
2,120 |
|
Written-off |
- |
- |
- |
- |
- |
(30) |
(30) |
|
|
Effect of foreign exchange |
156 |
12 |
185 |
195 |
314 |
- |
- |
862 |
|
At 31 January 2021 |
17,447 |
464 |
4,764 |
6,757 |
19,285 |
- |
72 |
48,789 |
|
Accumulated impairment and amortisation |
||||||||
|
At 1 February 2020 |
11,363 |
204 |
3,113 |
4,185 |
11,374 |
30 |
8 |
30,277 |
|
Amortisation |
- |
47 |
422 |
445 |
1,889 |
- |
3 |
2,806 |
|
Written-off |
- |
- |
- |
- |
- |
(30) |
- |
(30) |
|
Effect of foreign exchange |
185 |
1 |
106 |
66 |
191 |
- |
- |
549 |
|
At 31 January 2021 |
11,548 |
252 |
3,641 |
4,696 |
13,454 |
- |
11 |
33,602 |
|
Net book amount at 31 January 2021 |
5,899 |
212 |
1,123 |
2,061 |
5,831 |
- |
61 |
15,187 |
The net book amount of development costs includes £5,831,000 (2020: £5,558,000) internally generated capitalised software development costs that meet the definition of an intangible asset. The amortisation charge of £2,806,000 (2020: £2,058,000) is included in the administrative expenses in the statement of comprehensive income.
