Profit last year, loss this year

Kyle_2

I am a self employed taxi driver, i paid £2000ish in tax last year (2008-2009) but this year (2009-2010) i have had expenses and had to reduce my hours to look after my mrs and i,ve only earned approx £5000. Am i able to claim any of the tax i paid last year back?
Thanks in advance

chrismac1

You can carry back the loss for up to 3 years in strict order - starting with last tax year 08-09. it would help to know what your taxable income for 08-09 was and your taxable loss 09-10. Seomtimes it is not worth carrying back a loss - I have 3 clients in this position at the moment. This is because you can't just carry a bit back and then carry the rest forward to future years' profits.

So you then have the choice - example of one of my clients:

1. Carry the loss back and get £1,000 tax back right now.
2. Carry it forward because 10-11 is looking good, and get the 10-11 tax bill reduced by £2,500.

zygurat789

You have probably paid tax on 31/7/10 and an equal amount included in your payment on 31/01/10 which was "on account" of your liability for 2009/10. If you are not liable for tax in 2009/10 you can request this money back now.

suso

Kyle wrote: »

I am a self employed taxi driver, i paid £2000ish in tax last year (2008-2009) but this year (2009-2010) i have had expenses and had to reduce my hours to look after my mrs and i,ve only earned approx £5000. Am i able to claim any of the tax i paid last year back?
Thanks in advance

You say you have earned 5000 this year, is that your profit or your turnover, if your profit is 5000 and you are concerned that you have have some unused allowances, then no you cannot backdate them. If your turnover is 5000, and you have made a loss because your expenses are higher this year than your takings,then you can carry back (or forward) losses.