I have a client who has started trading as a Personal Trainer. He has bought all of the necessary equipment and made a loss in the first year of circa £7000. Previous to this, he was employed on a reasonable Salary but still only a Basic Rate taxpayer.
He started trading in July 2019 and has pre-trading expenses that I have included such as the purchase of £7000 worth of gym equipment that he uses in the course of his work.
To carry back his loss, is it simply a case of filling in the necessary boxes on the Tax Return and calculating what 20% of his loss would be in order to claim back the correct amount of tax? This is not something i've previously done and don't want to fall fowl of HMRC.