Self-assessment won't let me carry forward previous years' losses

Windsorcastle

I've just spent 40 mins on hold to HMRC and then when I got through, the Adviser couldn't fathom the problem either!  I'm a sole trader and this is the first year I have made a small profit after showing a loss for the first 3 years of trading.  I have got to the bit where I should be able to carry forward previous years' losses and confirmed with the Adviser that I should enter the cumulative previous loss there and that it should then automatically deduct this year's small profit and show me an adjusted cumulative loss to carry forward to next year.

BUT when I enter the loss carried forward, I keep getting an error message saying the the loss c/f cannot exceed this year's net profit.  The Adviser insists this must be a technical error, and that I should be entering the entire cumulative loss from previous years. He didn't sound very sure of himself tbh so I wasn't confident his advice was correct!  

What am I doing wrong?  Should I be able to enter the full cumulative loss from previous years in order to balance this year's profit and calculate the remaining loss to c/f to next year?  Or should I only be carrying forward the exact amount of earlier loss to cancel out this year's profit? And then do I just take note of the adjusted loss I have left to carry forward to next year and so on?

I'm more confused now than before I rang HMRC.  Any help gratefully received!  TIA.

Jeremy535897

If you look at SA103S, you only enter the loss brought forward that is used. Box 28 is the net profit and box 29 says losses brought forward up to the amount in box 28. Then deal with the losses remaining to be carried forward separately.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

[Deleted User]

Windsorcastle said:

I've just spent 40 mins on hold to HMRC and then when I got through, the Adviser couldn't fathom the problem either!  I'm a sole trader and this is the first year I have made a small profit after showing a loss for the first 3 years of trading.  I have got to the bit where I should be able to carry forward previous years' losses and confirmed with the Adviser that I should enter the cumulative previous loss there and that it should then automatically deduct this year's small profit and show me an adjusted cumulative loss to carry forward to next year.

BUT when I enter the loss carried forward, I keep getting an error message saying the the loss c/f cannot exceed this year's net profit.  The Adviser insists this must be a technical error, and that I should be entering the entire cumulative loss from previous years. He didn't sound very sure of himself tbh so I wasn't confident his advice was correct!  

What am I doing wrong?  Should I be able to enter the full cumulative loss from previous years in order to balance this year's profit and calculate the remaining loss to c/f to next year?  Or should I only be carrying forward the exact amount of earlier loss to cancel out this year's profit? And then do I just take note of the adjusted loss I have left to carry forward to next year and so on?

I'm more confused now than before I rang HMRC.  Any help gratefully received!  TIA.

Box 29 (on Jeremy’s link to the paper version) - losses brought forward now utilised. 

Box 35 - losses brought forward, not able to be utilised this year and carried forward to future years.

Windsorcastle

Jeremy535897 said:

If you look at SA103S, you only enter the loss brought forward that is used. Box 28 is the net profit and box 29 says losses brought forward up to the amount in box 28. Then deal with the losses remaining to be carried forward separately.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

Thanks so much.  The online version of the self-assessment is worded differently to the paper version but this makes sense.  I'm taken aback that the HMRC Adviser I spoke to last night gave me the wrong instructions on this!  

Windsorcastle

Box 33 (on Jeremy’s link to the paper version) - losses brought forward now utilised. 

Box 35 - losses brought forward, not able to be utilised this year and carried forward to future years.

Many thanks for your help - but isn't it Box 29 for losses brought forward and utilised this year?   

[Deleted User]

Windsorcastle said:

Box 33 (on Jeremy’s link to the paper version) - losses brought forward now utilised. 

Box 35 - losses brought forward, not able to be utilised this year and carried forward to future years.

Many thanks for your help - but isn't it Box 29 for losses brought forward and utilised this year?   

You are correct - and it certainly is phrased differently on the online version.