| For the period | 52 weeks to
30 March
2018
£m | 52 weeks to
31 March
2017
£m |
|---|
| Current taxation | | |
| UK corporation tax charge for the period | 12.5 | 16.1 |
| Adjustment in respect of prior periods | (2.2) | (0.3) |
| 10.3 | 15.8 |
| Deferred taxation | | |
| Origination and reversal of temporary differences | 0.8 | (0.4) |
| Adjustment in respect of prior periods | 1.3 | (0.4) |
| 2.1 | (0.8) |
| | |
| Total tax charge for the period | 12.4 | 15.0 |
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
| For the period | 52 weeks to
30 March
2018
£m | 52 weeks to
31 March
2017
£m |
|---|
| Profit before tax | 67.1 | 71.4 |
| | | |
| UK corporation tax at standard rate of 19% (2017: 20%) | 12.7 | 14.3 |
| Factors affecting the charge for the period: | | |
| Depreciation on expenditure not eligible for tax relief | 0.7 | 1.7 |
| Other disallowable expenses | 0.3 | 0.3 |
| Adjustment in respect of prior periods | (0.9) | (0.7) |
| Impact of overseas tax rates | (0.3) | (0.4) |
| Impact of change in tax rate on deferred tax balance | (0.1) | (0.2) |
| Total tax charge for the period | 12.4 | 15.0 |
The UK corporation tax rate reduced from 20% to 19% (effective 1 April 2017) and will be further reduced to 17% (effective from 1 April 2020) following changes substantively enacted on 6 September 2016. This will reduce the Company's future current tax charge accordingly. The deferred tax asset at 30 March 2018 has been calculated based on the rate of 17% substantively enacted at the balance sheet date.
The effective tax rate of 18.5% (2017: 21.0%) is higher than the UK corporation tax rate principally due to the non-deductibility of depreciation charged on capital expenditure and non-deductible amortisation of intangible assets.
The tax charge for the period was £12.4m (2017: £15.0m), including a £0.8m credit (2017: £0.9m credit) in respect of tax on non-recurring items.
An income tax credit of £0.2m (2017: £0.5m credit) on other comprehensive income relates to the movement in fair valuing forward currency contracts outstanding at the year end. No other items within other comprehensive income have a tax impact.
In addition to the above, a £nil current tax debit (2017: £0.6m credit) and a £nil deferred tax credit (2017: £0.6m credit) is recognised in reserves in relation to employee share options.
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 Company is fully committed to complying with all of its tax payment and reporting obligations.
In this period, the Group's contribution from both taxes paid and collected exceeded £168m (2017: £160m) with the main taxes including corporation tax of £16.1m (2017: £15.3m), net VAT of £67.2m (2017: £59.0m), employment taxes of £47.3m (2017: £48.3m) and business rates of £37.5m (2017: £37.3m).