Losses from prior years
If you are self employed, make sure to check your previous Self Assessment returns for losses that can be offset against any gains/ income this year. HMRC will not do this for you. In order to receive any tax relief owed you must carry the losses forward yourself.
Why would HMRC tell you if you have losses brought forward as that will mean you will pay less tax in the current year. If you make a loss in the current year you can push it back to prior years and possibly get a tax refund; you can off-set it against some income you have made this year for example employment income, or you can carry the loss forward to the next year and offset it against any profits from the same trade.
Should you make a loss on property rental and you chose to carry this forward, it can only be used against future property profits.
Always talk to your accountant before acting on any advice. If you’d like to talk to us about your accounting requirements, please complete the contact form >>>> HERE <<<< and we’ll get in touch.