Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

In preparing the financial statements in accordance with FRS 102, management is required to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

During the year, the company identified historic errors relating to the accounting treatments of director loan account balances and associated interest charges.

Amounts previously transferred to the parent company had not been formally recognised within the parent company’s accounting records and have therefore been reinstated through the company’s director’s loan account. In addition, interest relating to prior accounting periods had not previously been charged to the director’s loan account.

Accordingly, the comparative figures for the year ended 31 August 2023 have been restated and a prior year adjustment has been recognised. Interest of £1,858 has been charged to the comparative profit and loss account for the year ended 31 August 2023. Interest relating to periods prior to 1 September 2022 of £2,999 has been adjusted through opening retained earnings.

The adjustments increased the director’s loan balance and reduced retained earnings at the beginning of the comparative period.