tax return, sole trader.. need a bit of help :)

Missy_Spud

Hi, I first became a sole trader in nov 2011, i made a loss first year, on my first tax return i stated i wanted to carry forward the amount of loss i had made, so on the second years tax return do i put that i want to carry forward the loss amount minus any profit from this year? so say i had a loss of £500 first year, i made £100 profit second year do i put i want to carry forward £400 to next years tax return? is that how it works? im a bit confused and want to make sure i get it correct!

Thank You

Suarez

Try this from HMRC

http://www.hmrc.gov.uk/helpsheets/hs227.pdf