Self Assessment: can't enter Loss Brought Forward from Earlier Years

Bimbly

In some previous years, my little business made a loss which I have been carrying forward without a problem. In 21/22, it made a net profit. The form is refusing to let me offset these losses against my modest profit. I was in the same situation last year and managed to fill in the form ok. What do I have to do? I'm so very frustrated.

It won't let me add a figure in the box, "Loss brought forward from earlier years set-off against 2021-22 profits:". The figure I am trying to add is this year's profit, which is less than the loss carried forward from previous years. All I get is:

• IMPORTANT: Please check the help on the 'Loss brought forward' field and review the figure entered in this box

Last year, I had a similar issue which I solved by using the worksheet which put these figures into the boxes for me. This year, it's not working. In the worksheet, under "Losses brought forward from earlier years: (optional)", I have put in the figure carried forward from previous years as recorded in the previous year's tax return. Under "Losses brought forward from earlier years used in the year 2021-22: (optional)", I have put my profit for this year. The worksheet takes the carried forward losses, subtracts this year's profit and gives me the figure for "Loss carried forward to next year". I click "Use these figures" and it fills in box on my return for the loss carried forward to next year.

However, it doesn't fill in the "Loss brought forward from earlier years set-off against 2021-22 profits:" box. If I try to fill it in myself, I get the error as described above.

I swear that last year I managed to sort all this out by filling in the worksheet and using those figures. This year, it's absolutely not working.

I hope that makes sense. Please help!

[Have edited some comments below to remove personal financial information]

Dazed_and_C0nfused

What is the loss available at 5 April 2021?

Completely ignoring the loss what is your taxable profit for 2021:22?

Bimbly

Hi Dazed,

Loss available at April 2021 is £xx,xxx

Taxable profit for 21/22: £x,xx

Edit to add: When I fill in the worksheet, it shows loss to carry forward is £xxxxx. So it's doing that bit, not the other bit!

Jeremy535897

Is your tax overstated, or is it the amount you expect after deducting the losses brought forward?

Bimbly

Jeremy535897 said:

Is your tax overstated, or is it the amount you expect after deducting the losses brought forward?

Not entirely sure I follow what you mean, but...

The tax return currently wants to tax me on the profit without taking into account losses carried forward - because I can't fill in this box. If carried forward losses are taken into account, it would mean I owe no tax.

Jeremy535897

So it is reducing the loss carried forward, but not using the loss against the profit. It is not something I have come across. I don't use HMRC software. It is a pity you have left the completion of your return so late, as I imagine it will be almost impossible to get through to HMRC at the moment.

Bimbly

Jeremy535897 said:

So it is reducing the loss carried forward, but not using the loss against the profit. It is not something I have come across. I don't use HMRC software. It is a pity you have left the completion of your return so late, as I imagine it will be almost impossible to get through to HMRC at the moment.

All my accounts are done, it's just putting in the figures. I left it a week or so in case there was something I'd forgotten (there was!). I didn't do the finishing touches last weekend as planned, so just doing it now and... it won't cooperate. 

I had trouble typing in the figure manually last year, but discovered that filling in the worksheet was the trick. Last year, clicking "use these figures" filled in the relevant boxes. I don't know why it's not doing it this year.

Jeremy535897

I prefer to file no later than 30 June. What happens when you do what it says, check the help and review the figure?

Bimbly

Jeremy535897 said:

I prefer to file no later than 30 June. What happens when you do what it says, check the help and review the figure?

 I think in June I was recovering from a hellish deadline.

Thanks for trying to help. When I type it in, it asks me to check the entry below.


It says this at the top:

Bimbly

Hmm... so if I enter that figure above and ignore the warning, the tax calculation is correct.

Can I still submit the tax form like that? I've included figures like this in the past and always managed to clear any warnings.

This is what it shows under "Check Your Return":

Jeremy535897

It's not something I am familiar with. Are you able to submit a "test in live" to HMRC using their software? That would tell you whether the return will be accepted on live submission, and you can also check that the tax is correct and hasn't been altered.