Annual Report & Accounts - Countrywide Farmers

Notes to the Financial Statements (Continued)
For the year ended 31 May 2008
6) TOTAL OPERATING PROFIT
Group Group
Total
Total
2008 2007
£000s £000s
Total Operating Profit is stated after charging:
Staff costs (note 24) 15,488 13,850
Depreciation
Tangible owned fixed assets 3,099 4,841
Tangible fixed assets held under finance leases 83 38
Within joint venture 22 351
Goodwill amortisation 114 126
Negative goodwill amortisation (71) -
Operating lease charges
Plant and machinery 901 949
Other 1,653 2,210
Auditors' remuneration in respect of:
Audit of the parent company and consolidated financial statements 51 51
Other services:
Subsidiary company audit services 9 13
Tax advisory services 91 110
Interim review 18 25
Other 20 15
7) TAX ON PROFIT ON ORDINARY ACTIVITIES
Group Group
Total
Total
2008 2007
£000s £000s
Current tax
United Kingdom corporation tax at 29.7% (2007: 30%) 961 163
Overprovision in respect of previous year:
Group (324) (7)
Current tax charge 637 156
Deferred tax: Group (note 17)
Current year (845) 1,930
Effect of decrease in tax rate 39 -
(806) 1,930
Joint Venture - 110
Tax on profit on ordinary activities (169) 2,196
Factors affecting tax charge for the year
The tax assessed for the year differs from the standard rate of corporation tax in the UK (30%). The differences are
explained below:
Group Group
Total
Total
2008 2007
£000s £000s
Profit on ordinary activities before tax 1,424 4,342
Profit on ordinary activities at the standard rate in the UK 29.7% (2007: 30%) 423 1,303
Effects of:
Expenses not deductible for tax purposes 298 1,010
Capital allowances for year in excess of depreciation (359) (325)
Other timing differences (298) (925)
Differences between book gains and taxable gains 907 (894)
Tax of group company at marginal rates (10) (6)
Adjustments to tax charge in respect of previous year (324) (7)
Current tax charge for the year 637 156
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