Loss relief earlier years online assessment

busybee100

[Deleted User] wrote:

It is exactly the same. Online taxpayers do not get to fill in a different return from paper filers. However - I fear that you may have made a basic mistake. Did you, on the tailor your return section, answer 'Yes' to the question - Did you have income tax losses in 2014/15? You should not have done this as the information box alongside warns. Trading losses go in the self-employed pages only.

:T

THANK YOU that's probably it. I'll check again tomorrow and let you know. Gee what a mare :rotfl:

Thank you again

[Deleted User]

busybee100 wrote: »

I've just looked on You Tube and it's the same layout as the paper version although it is the return for 12-13. Is it because we've used the short version?

Nope - i have just logged into a client's return and created a dummy loss (he won't mind!) and it is all there. Did you read my previous post?

Loss from this tax year set-off against other income for 2014-15:£
Help about: Loss from this tax year set-off against other income for 2014 to 2015 - opens in a new window
Loss to be carried back to previous year(s) and set-off against income (or capital gains):£
Help about: Loss to be carried back to previous year(s) and set-off against income - opens in a new window
Total loss to carry forward after all other set-offs including unused losses brought forward:£

[Deleted User]

busybee100 wrote: »

:T

THANK YOU that's probably it. I'll check again tomorrow and let you know. Gee what a mare :rotfl:

Thank you again

Great! Because you are claiming a loss in early year's of trade this will go into the 'too hard box' at HMRC and an inspector will be looking at this (or whatever they are now called). You need to try to avoid omissions or silly requests for information because you have left something out on the additional information box. The wording, therefore, is important - which is why I asked for some details even if fictitious.

busybee100

It was the tick box. All done now. She's going to write to them to reclaim it. It should be ok as although she made a loss her first year turnover is 100% more this year and she will be in profit.

Thank you.

[Deleted User]

You really ought to claim the loss relief in the return as I suggested earlier. What you are now doing is corresponding with HMRC outside of the submission which is something I would always try to avoid. In the additional information box you should be typing, for example. Loss £7000 claimed against income of 2011/12 under S72 ITA 2007 (loss in early years of trade). Relief due £7000 @ 20% =£1400. The loss must be set against total income even if this results in wasted personal allowances or it is not all relievable at 20% etc
Good luck!

busybee100

I was hoping to split it over 2 tax years, if I remember rightly. The loss is £3500. She paid £2500 tax in both 11/12 and 12/13 with no other investment, pension complications.


Can you expand on this bit please?
'set against total income even if this results in wasted personal allowances'

[Deleted User]

You can't split it in the way that you suggest - not sure why you would want to.

Loss £3500 claimed against income of 2011/12 under S72 ITA 2007 (loss in early years of trade). Relief due £3500 @ 20% =£700.00 adjustment required to self-assessment.

If your self-employed income had been 10000 in 2011/12 you would have set the loss against this in totality, reducing the income to £6500. You cannot use, say, 1000 of it because it suits you.