Previous years losses and using against profits in self assessment

katykatkat

Please can someone advise. I had small losses in 2015-2016 (~300 loss) and in 2016-2017 (~250 loss). In 2017-2018 I made a profit of £7500, but carried forward the loss to use in later years (when I could offset it against taxable income).
I think that this might be an error, and I should have used up the ~-£550, and declared +£6950 profit. ???
* are losses always used on the first profitable year (ie any profit, not just when it takes you above a threshold)?
* how do I amend my self assessment for 2017-2018 if this is the case?
Hope you can help

Growingold

I asked this question before in this forum and yes you have to use losses brought forward against first available profit. You say 17 - 18 tax year. You will be able to amend this tax return on line. I think until January 2020. But once you alter this return if there are any amended losses carried forward you then need to correct your 18-19 return with the amended losses brought forward.

If it was for an earlier tax year you would have needed to write to them to tell them of your error and give them the correct figures.

Hope this helps.

jimmo

Growingold wrote: »

I asked this question before in this forum and yes you have to use losses brought forward against first available profit.

That is correct as a general rule but there are exceptions for the early years ( first 4) of trading.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim85045
The other exception is for the final year of trading. That seems highly unlikely to be relevant but details are here.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim85055

Sibbers123

Losses must be used against the first available profits from the same trade, regardless if those profits are covered by the personal allowance.

Unless you will be saving tax by amending your previous return, i wouldn't worry too much about it, but there is no carry forward losses left essentially.