The Corporation Tax check gives you an estimated corporation tax figure for a client's current and previous financial years. It uses UK tax rates and the financial year-end dates set in the client's Xero settings.

To access it, go to a client's account and select Data Health in the left navigation, then select Corporation tax.

The Corporation Tax check is available to practices with the Data Health & Insights add-on, on Practice Essentials and Practice Advanced plans.

The Corporation Tax check calculates an estimated tax figure based on data pulled from the client's Xero account. It's a guide to help you confirm that any provision has been correctly reflected in the general ledger — it doesn't cover all possible adjustments from the accounting profit.

The calculation reflects the changes to corporation tax rates from 1 April 2023, including any marginal relief adjustment. It doesn't account for the impact of associated companies.

By default, Dext uses Xero's account types and reporting codes to populate each section of the calculation. You can override these defaults for an individual client without affecting your team's default settings.

To adjust the calculation for a client, select the cog icon next to any section. The modal that opens shows which account codes are currently included or excluded for that section. Select an account code from the list to add it. To remove a code you've added, select the delete icon next to it.

Select Save to apply your changes. The calculation recalculates immediately for the current and previous years based on the updated configuration.

Selecting account codes from the cog overrides the default or team settings for this client only.

The Revenue section is calculated by excluding specific account codes from the total. The cog shows which accounts are currently excluded. Select account codes to exclude them from the Revenue calculation for this client.

The Other income section works the same way as Revenue — select account codes to exclude them from this section's calculation.

The Operating expenses section excludes specific account codes from the total. The cog shows any accounts currently excluded. Select account codes to add them to the exclusion list for this client.

The Depreciation section is calculated by including specific account codes. The cog shows which accounts are currently included. Select account codes to add them to the Depreciation calculation for this client.

The Entertaining section is calculated by including specific account codes. The cog shows which accounts are currently included. Select account codes to add them to the Entertaining calculation for this client.

The Other add back section is calculated by including specific account codes. By default, no accounts are included. Select account codes to add them to the Other add back calculation for this client.

The Other deductions section is calculated by including specific account codes. By default, no accounts are included. Select account codes to add them to the Other deductions calculation for this client.

The Corporation Tax Per Ledger at Reporting Date section is calculated by including specific account codes. By default, no accounts are included. Select account codes to include them in this section's calculation for this client.

The Capital Allowances section uses the Fixed Assets register in Xero to identify assets purchased within the selected date period. Dext looks for assets that meet both of these criteria:

Capital Allowances excluded asset types: You can exclude specific asset types from the Capital Allowances calculation. Select the cog next to Capital Allowances to see which asset types are currently excluded and add or remove them. Changes apply to this client only and override the default settings.

To update the Corporation Tax check, use the two buttons at the top of the page:

If you've made changes in Xero, select Sync first, then Recalculate to see the updated figures.