Page 56 - Hardide-Annual-Report-2021
P. 56

  56 Notes to the Group Financial Statements
(a) Tax on ordinary activities:
UK Corporation Tax Charge Adjustment in respect of prior years
2021 £ ‘000
(38) (125)
2020 £ ‘000
(23) (42) (65)
- - -
     Deferred Tax
Origination and reversal of timing differences
Adjustments in respect of prior periods
Effect of rate change on opening balance
Tax (125)
 - - -
   (65) The tax assessed on the profit on ordinary activities for the year is lower than (2020: lower than) the standard rate of
 (b) Factors affecting current tax charge: corporation tax in the UK of 19% (2020: 19%)
Loss on ordinary activities before taxation Loss on ordinary activities by rate of tax Effect of:
Expenses not deductible for tax purposes Deferred tax not recognised
Adjustment in respect of prior periods Adjustment to opening / closing deferred tax R&D enhanced expenditure
R&D surrendered
Other differences
Total current tax (note 7a)
2021 £ ‘000
(2,927) (556)
42 836 (38) (361) (77) 23 6 (125)
2020 £ ‘000
(1,356) (258)
(49) 428 (42) (91) (74)
21 - (65)
            The standard rate of corporation tax in the UK is currently 19% (2020: 19%). The Group has unutilised trading tax losses in the UK of approximately £11.2m (2020: £7.3m) available to carry forward against future trading profits. The general principle in IAS 12 is that a deferred tax asset is recognised for unused tax losses to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilised. No deferred tax asset has been recognised in respect of these amounts due to the unpredictability of future taxable profits.
Changes in tax rates
On 3 March 2021, the Chancellor of the Exchequer announced an increase in the rate of Corporation tax to 25% to take effect from 1 April 2023 for companies who profits are greater than £250,000 per annum. The impact of the change in tax rate to current tax for the year ended 30 September 2021 is not material. The impact of the change in tax rate to deferred tax not recognised at 30 September 2021 would be an increase in deferred tax assets not recognised of £264,000.
(Loss) on ordinary activities after tax
Basic earnings per ordinary share:
Weighted average number of ordinary shares in issue Earnings per share
2021 £ ‘000
53,672,622 (5.2)p
2020 £ ‘000
51,911,022 (2.5)p
     As net losses were recorded in 2021 and 2020, the potentially dilutive share options are anti-dilutive for the purposes of the loss per share calculation and their effect is therefore not considered.

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