Blogger
Share this content
0
7
10393

Corporation Tax Loss - Carry Back

Silly question but how do you carry back a trading loss for corporation tax? Do I have to amend last year's return to include the loss from this year?

Replies

Please login or register to join the discussion.

No

Obviously make sure the carry back is noted in the comps and tick the box on page 1 of the return "a repayment is due for an earlier period". 

I also attach a letter to the return to highlight it and then send a copy of the letter with another one, a month later, when they ignore it!

Thanks (0)
avatar
27th Feb 2013 11:11

Thanks

Hi Paul,

Thanks for that! Shame it's not automatic and has to be done as a seperate claim - means someone will have to actually process it... HMRC don't seem to be very good at doing that!

Thanks (0)
avatar
By blok
27th Feb 2013 11:16

.

I redo the previous years tax return showing the repayment due.

Happy to stand corrected if that is not the correct procedure!  It has worked thus far.

I do recall asking HMRC what the corect procedure was, but I may as well have asked my 10 month old daughter.

Thanks (0)
avatar
By SJRUK
27th Feb 2013 15:46

Adjust previous CT600

blok wrote:

I redo the previous years tax return showing the repayment due.

 

I've always done it this way.  Adjust previous CT600 and re-submit on-line, showing new tax due and tax actually paid.  Tax repayment then follows relatively quickly.

Thanks (0)
avatar
27th Feb 2013 11:21

Blok

Yeah that's what I've been doing as well but someone asked me what was the correct procedure and I just didn't know!

Thanks (0)
avatar
27th Feb 2013 16:57

I always amend the previous year too.  Ensure you put a tick on page 1 of the previous year amendment that a repayment is due for this year, and a tick against repayment due for previous year on the loss year's return.  Saves having to write.

Thanks (0)
avatar
01st Mar 2013 09:42

All online
I have always shown the loss to be carried back in my computations, tick the 'repayment due for earlier year' box on page 1 of CT600 and simply submit that online in the normal manner. HMRC have always processed the loss carry back automatically and issued a refund, no need to revise previous returns or send by post. Perhaps I've been lucky to date.

I always prepare a profits/loss summary in excel for my own internal purposes to keep track of previous years profits and losses carried back.

Thanks (0)