Terminal Loss - Claiming?

Terminal Loss - Claiming?

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I have a client who ceased to trade in 2012-13 and has terminal losses which I want to carry back to 2011-12 and 2010-11. Do I write to HMRC claiming these or can I amend the previous 2 years tax returns. If I can amend returns where do I enter the figures in the self employment pages? It was a lot easier when we were just able to send the claim to HMRC to implement and they assessed the tax year!!!! Can anyone help me out? 

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By Alexdon
24th Oct 2013 12:01

Terminal losses

As far as I am aware a letter to HMRC is required.

I had a similar issue, for the current return I included the amount of losses in box 33 of the self employment pages and made full reference in the "Any further information" box on the main body of the return. I then wrote to HMRC to claim the specific amounts for each year making reference to the relevant items on the return. I cannot say whether the Return or my letter triggered the revised assessments, it was just a case of belt and braces.

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By DMGbus
24th Oct 2013 13:33

Here's how I did it, 2012

Tax return page TC2, box 14.   Enter in box 14 the repayment due.

In my case it was opening years losses for a client that caused the repayment so in the white box on page TC2 I wrote the following:

" Losses of £2905 at 20 per cent equals £581.00 tax repayment due.2011/12 tax year trading loss (new business) carried back for relief by reference to income (and tax paid) of tax year 2008/09."  So, for a terminal loss a similar principle applies (but changing the tax year references) - repayment due in box 14 on page TC2 with explanation in the white space on page TC2.In this instance no letter was sent to HMRC.  The tax repayment was shown as "pending" the same month as the tax return was filed online and physically issued 2 months later. 

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By Alexdon
24th Oct 2013 14:34

Here's how he did it.

Seems a good plan!

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