How to carry back losses for self-employment

hugo1985

Hi,

My Accountant submitted the Amended Tax returns for 2013/2014 Tax year on 26/01/2016 which increase the tax bill to 3868£ and I am keep getting the letter from HMRC to pay overdue Tax.
secondaly I have the losses of 8809£ in Tax year 2014/2015 my Accountant mentioned this loss on SA submitted on 26/01/2016 in box 22 (Or, net loss) and in box 32 Net business loss for tax purposes; he also filled the box 34 (Loss to be carried back to previous year(s) and set off against income (or capital gains) ).
when I log in to my HMRC account and checked the total Tax due for the year 2013/2014 Tax year it is still showing Tax overdue 3868£. it looks like HMRC has not made adjustments to my tax bill for 2013/2014 after I show the loss of 8809£ and asked for it to set off against the profits of Tax year 2013/2014.
what steps do I need to take in order to get this sorted as I believe after the loss adjustment Tax bill should reduced to around 2000£ from 3868£.
is my accountant missing something on tax returns or does he needs to make any amendments to 2013/2014 tax returns as well? OR Does he need to make changes to my 2014/2015 Tax returns?


Regards

Pennywise

Loss relief claims into an earlier year aren't automatically processed by HMRC. Revised SA returns replacing an earlier submission, likewise, aren't automatically processed. Both take some time to filter through their systems. To help speed up the process, you could telephone them and ask them what to do.

hugo1985

Hi,

Thanks for your reply, but can some one please advise if my accountant have filled all the relevant boxes correctly (as mentioned in my original post) or does he needs to fill any aditional box as well?
Secondaly do I have to make changes to my 2013/2014 Tax return as well in order to set off the losses in 2014/2015 tax year against the 2013/2014 tax year?
some told me my accountant have to fill the box 15 stating (Decrease in tax due because of adjustments to an earlier year) in my 2014/2015 Tax returns with a total figure of loss in order to get it considered (is this correct?).

Regards

[Deleted User]

There is more than one box 15 on the main SA form and the box 15 on the self-employed form refers to 'repairs and renewals' - so I am not sure to which box you refer.

However, my own approach has always been to set out the adjustment required in the additional information box:

e.g. Loss relief 2014/15 £8809.

Loss relief by reference to income of the previous year 2013/14 under (S64(2)(b) ITA 2007) £8809.

Adjustment required: Income tax £8809 @20% = £1761.80
Class IV NIC £8809 @9% = £792.80

Always on the assumption that you did incur those liabilities in 2013/14.