Carried back losses

[simon edge]

I have some losses to carry back against corporation tax paid in the previous year in expectation of a refund. Do I need to included a provision for this 'debtor' in this year's accounts (since I don't include an actual computation for the refund on the CT600)? If so, does it appear as a positive number in the same place on the P&L sheet of the statutory accounts that would normally show the tax due for the year? If I don't include it, how do I treat the refund when it appears in the subsequent year?

Many thanks

[Incredulum]

Cr tax (adjustment in respect of prior year)
Dr tax receivable

You probably put the debtor under current assets as opposed to current liabilities (where a tax creditor would go).

[simon edge]

Thanks, so just to be clear : - You would expect to see an entry on the P&L sheet of the formal accounts, as a positive number, which would reduce the 'Loss for the Financial Year', and instead of saying "Tax on Profit on ordinary activities" it would say " tax adjustment in respect of prior year"?

Thanks

[Incredulum]

Actually, having now read your post properly, the tax is probably better a current year credit than an adjustment re prior year. i.e. in current year you make a loss, so get a tax credit (achieved by using the loss against the previous year's profit).

So in the P&L, "tax credit on loss for current year"

[simon edge]

I'm sure that will do nicely. Thanks for your trouble.