| For the period | 52 weeks to
28 March
2014
£m | 52 weeks to
29 March
2013
£m |
|---|
| Current taxation | | |
| UK corporation tax charge for the period | 20.1 | 21.5 |
| Adjustment in respect of prior periods | (0.7) | (1.8) |
| 19.4 | 19.7 |
| Deferred taxation | | |
| Origination and reversal of temporary differences | (1.8) | (1.8) |
| Adjustment in respect of prior periods | (0.5) | 0.4 |
| (2.3) | (1.4) |
| Total tax charge for the period | 17.1 | 18.3 |
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
| For the period | 52 weeks to
28 March
2014
£m | 52 weeks to
29 March
2013
£m |
|---|
| Profit before tax | 72.6 | 71.0 |
| UK corporation tax at standard rate of 23% (2013: 24%) | 16.7 | 17.1 |
| Factors affecting the charge for the period: | | |
| Depreciation on expenditure not eligible for tax relief | 1.5 | 1.2 |
| Employee share options | (0.5) | (0.2) |
| Other disallowable expenses | 0.4 | 1.9 |
| Adjustment in respect of prior periods | (1.2) | (1.4) |
| Impact of overseas tax rates | (0.5) | (0.4) |
| Impact of change in tax rate on deferred tax balance | 0.7 | 0.1 |
| Total tax charge for the period | 17.1 | 18.3 |
Reductions in the UK corporation tax rate from 26% to 24% (effective from 1 April 2012) and to 23% (effective 1 April 2013) were substantively enacted on 26 March 2012 and 3 July 2012 respectively. Further reductions to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. This will reduce the Company's future current tax charge accordingly. The deferred tax asset at 28 March 2014 has been calculated based on the rates of 20% and 21% substantively enacted at the balance sheet date.
In this financial period, the UK corporation tax standard rate was 23% (2013: 24%).
The effective tax rate of 23.5% (2013: 25.7%) is higher than the UK corporation tax rate principally due to the non-deductibility of depreciation charged on capital expenditure and other permanent differences arising in the period.
The tax charge of £17.1m (2013: £18.3m) includes a charge of £0.1m (2013: £0.1m charge) in respect of tax on non-recurring items, as detailed in note 5.
An Income tax credit of £0.8m (2013: £0.7m charge) on other comprehensive income relates to the movement in fair value of forward currency contracts outstanding at the year end. No other items within other comprehensive income have a tax impact.
The Group engages openly and proactively with tax authorities both in the UK and internationally, where it trades and sources products, and is considered low risk by HM Revenue & Customs ("HMRC"). The Group is fully committed to complying with all of its tax payment reporting obligations throughout the business.
In FY14 the contribution to the UK Exchequer from both taxes paid and collected exceeded £157.9m with the main taxes including corporation tax £35.3m, net VAT £49.8m, PAYE £17.1m, Employees National Insurance Contributions £8.8m, Employers National Insurance Contributions £11.2m and Business Rates £35.6m.