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?
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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!
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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.
Adjust previous CT600
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.
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.
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.