Self assessment - losses carried forward

LouiseDB

Thank you to you both - Purdyoaten and Pennywise

[Deleted User] wrote:

Secondly, and I am open to correction, but FOUR years is simply to The time limit to CLAIM the loss NOT to utilise. So the loss of 2014/15 must be CLAIMED by 5th April 2019 but this does not mean it has to be utilised.

I went back and read through everything again.

I submitted my return in December. I did not put the loss for 2014/2015 against 2017/2018 (but double checked and I did against 2016/2017). What I am going to do is amend the return to use the 2014/2015 loss against 2017/2018, and carry the remainder forward.

AND then I'm going to go see a tax adviser because this has made my head explode and I'm looking to submit my 2018/2019 return in May so just going to get this sorted. And then update here for clarity.

[Deleted User]

The relevant box says :

Total loss to carry forward after all other set-offs – including unused losses brought forward

So the loss carried forward is loss brought forward less profit 2017/18 (even if this is £1). This is as you have stated in your third paragraph.

You have claimed the loss by declaring it on your return. You utilise that claim when you next make a profit. There is no time limit on the utilisation of losses carried forward as there is on other loss claims.

It is unfortunate, but not surprising, that you have received duff information from HMRC.This would be well beyond the expertise of most HMRC staff who would not be fully trained on such a specialist area.

davey9

purdyoaten2. Appreciate been a while since the last post on this thread. Question though if I may. You have 4 years to claim but no time limit to utilise and a claim is made by declaring on a return. Why would someone take 4 years to make the claim? As soon as the loss was made surely you would declare it straightaway? Bearing you mind you only have till 31 Jan the following year to submit the return, if the return was submitted 4 years late and only the loss declared then, they would get a big fine fir late filing.

Dazed_and_C0nfused

davey9 said:

purdyoaten2. Appreciate been a while since the last post on this thread. Question though if I may. You have 4 years to claim but no time limit to utilise and a claim is made by declaring on a return. Why would someone take 4 years to make the claim? As soon as the loss was made surely you would declare it straightaway? Bearing you mind you only have till 31 Jan the following year to submit the return, if the return was submitted 4 years late and only the loss declared then, they would get a big fine fir late filing.

It is not unknown for people not to bother filing a return for the first year of a new business thinking that no tax to pay means no need for a return but they may have in incurred losses.

And late filing penalties are based on when the return was issued, not the normal filing date.  So late disclosure will always result in you getting 3 months to file a return before late filing penalties can be charged.