Tax return question

Johnpatter

I have 2 businesses 1 makes a profit and 1 made a loss last year
When my calculation came through it only done it on my profitable business
How do I use my loss to cut the tax I pay and reduce my calculation
I just don’t seem to be able to do it or find the right answers anywhere
Could anybody help please?
Thank you in advance

Pennywise

On the self employment pages for your loss making business, you enter the loss in the box marked "loss from this year to be set against other income". If you've already submitted your SA return, you'll need to submit an amended return.

Johnpatter

Thanks for your reply
For some reason couldn’t see how to do that I seen the loss bit wasn’t able to let it do it!
I’ve not submitted return so will try again later
Thanks

badmemory

take care - if you are using cash basis they do not always seem to allow the loss.

Johnpatter

How do you mean not allow it?
Surely a loss is a loss and says you can use losses for 4 years?
Thanks

[Deleted User]

Johnpatter wrote: »

How do you mean not allow it?
Surely a loss is a loss and says you can use losses for 4 years?
Thanks

Not the case I am afraid.

https://www.gov.uk/simpler-income-tax-cash-basis

badmemory

This only applies if you are using the simpler cash basis accounts. I know this because a friend, whose accounts are on the cash basis, made a very expensive purchase in March one year which wasn't sold until April & left him with an c£800 loss. When filing the next year the SA would not allow the carry forward.

Johnpatter

Thanks it looks like the loss can only be used against the business that made the loss in the future
Thanks for all your help

Johnpatter

It’s my own fault
I was just under the impression your tax return was a calculation for all your earnings and outgoings combined if you had more than one business
We live and learn

badmemory

Do the 2 businesses need to be separate?

Johnpatter

There both different trades so I thought they had to be seperate
Ones for printing and ones for plumbing