| For the period | 52 weeks to
2 April
2021
£m | 53 weeks to
3 April
2020
£m |
| Current taxation | | |
| UK corporation tax charge for the period | 16.9 | 5.4 |
| Adjustment in respect of prior periods | (1.0) | (0.5) |
| 15.9 | 4.9 |
| Deferred taxation | | |
| Origination and reversal of temporary differences | (4.7) | (1.5) |
| Adjustment in respect of prior periods | 0.1 | (1.5) |
| (4.6) | (3.0) |
| Total tax charge for the period | 11.3 | 1.9 |
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
| For the period | 52 weeks to
2 April
2021
£m | 53 weeks to
3 April
2020
£m |
| Profit before tax | 64.5 | 19.4 |
| UK corporation tax at standard rate of 19% (2020: 19%) | 12.3 | 3.7 |
| Factors affecting the charge for the period: | | |
| Depreciation on expenditure not eligible for tax relief | 0.9 | 0.5 |
| Employee share options | (1.3) | – |
| Other disallowable expenses | 0.6 | 0.8 |
| Adjustment in respect of prior periods | (0.9) | (1.9) |
| Impact of overseas tax rates | (0.3) | (0.3) |
| Impact of change in tax rate on deferred tax balance | – | (0.9) |
| Total tax charge for the period | 11.3 | 1.9 |
The March 2021 Budget announced a further increase to the main rate of corporation tax to 25% from 1 April 2023. This rate has not been substantively enacted at the balance sheet date, as result deferred tax balances as at 2 April 2021 continue to be measured at 19%. If all of the deferred tax was to reverse at the amended rate the impact to the closing deferred tax position would be to increase the deferred tax asset by £3.9m.
The effective tax rate of 17.5% (2020: 9.7%) is lower than the UK corporation tax rate principally due to the impact of deferred tax on accounting for share options and adjustments in respect of provisions held in respect of prior periods.
The tax charge for the period was £11.3m (2020: £1.9m), including a £6.1m credit (2020: £5.0m credit) in respect of tax on non-underlying items.
An income tax credit of £1.6m (2020: £0.7m charge) 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.
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 £170m (2020: £208m) with the main taxes including corporation tax of £10.8m (2020: £16.3m), net VAT of £97.4m (2020: £101.4m), employment taxes of £61.2m (2020: £54.3m) and business rates of £0.9m (2020: £36.3m).