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Time's Up
The article by Richard Curtis, ' It's Just a Matter of Timing' ( see Taxation , 24 February 2005, p512) is a very useful reminder of the need and basis for deferred tax provisions. On page 514, the article says that 'the issue of deferred tax will not usually arise in the case of sole traders and partnerships'.
Time's Up
The article by Richard Curtis ' It's Just a Matter of Timing' ( see Taxation 24 February 2005 p512) is a very useful reminder of the need and basis for deferred tax provisions. On page 514 the article says that 'the issue of deferred tax will not usually arise in the case of sole traders and partnerships'.
In terms of accounts preparation this is true — there is no requirement even to consider the subject let alone make a provision for it. However such timing differences will also affect of course the tax computations of those entities too.
Given that ideally at least sole proprietor or partner drawings should be net of taxation it has always been my custom to encourage after-tax drawings that take account of material timing differences and which might reverse adversely...
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