EasyJet 2008 Annual Report Download - page 58

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5 Tax (continued)
Reconciliation of the total tax charge
The tax for the year is lower than the standard rate of corporation tax in the UK.
2008 2007
£million £million
Profit on ordinary activities before tax 110.2 201.9
Tax charge at 28% (2007: 30%) 30.9 60.6
Attributable to rates other than standard UK rate (1.5) (6.7)
Income not chargeable for tax purposes (0.2) (0.9)
Expenses not deductible for tax purposes 0.3 0.7
Share-based payments 0.2 5.1
Adjustments in respect of prior periods – current tax (23.1) (0.7)
Adjustments in respect of prior periods – deferred tax 20.4 (4.8)
Change in tax rate –(3.7)
27.0 49.6
Deferred tax
The net deferred tax liability included in the balance sheet is as follows:
Accelerated Short-term Fair Share-
capital timing value based
allowances differences (gains)/losses payments Total
£million £million £million £million £million
At 1 October 2007 51.9 (1.8) (3.7) (11.8) 34.6
Charged/(credited) to the income statement 1.5 35.6 (8.5) 0.7 29.3
Acquisition of GB Airways (note 22) (3.7) (3.2) 28.9 – 22.0
Charged to shareholders’ funds – – 14.4 7.3 21.7
At 30 September 2008 49.7 30.6 31.1 (3.8) 107.6
Accelerated Short-term Fair Share-
capital timing value based
allowances differences (gains)/losses payments Total
£million £million £million £million £million
At 1 October 2006 46.8 6.0 (5.3) (15.8) 31.7
Charged/(credited) to the income statement 5.1 (7.8) 1.4 (1.3) (2.6)
Charged to shareholders’ funds – – 0.2 5.3 5.5
At 30 September 2007 51.9 (1.8) (3.7) (11.8) 34.6
Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority. As a result the net
UK deferred tax liability is £108.1 million (2007: £35.0 million). The net overseas deferred tax asset is £0.5 million (2007: £0.4 million).
6 Earnings per share
Basic earnings per share has been calculated by dividing the profit for the year retained for equity shareholders by the weighted average number of shares
in issue during the year after adjusting for shares held in employee share trusts.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential shares.
Share options granted to employees where the exercise price is less than the average market price of the Company’s ordinary shares during the year are
considered to be dilutive potential shares. Where share options are exercisable based on performance criteria and those performance criteria have been
met during the year, these options are included in the calculation of dilutive potential shares.
easyJet plc
Annual report and accounts 2008
Notes to the
financial statements
continued
56