I have a client who ceased trading in May 2020 and has terminal losses carried back to 2019/20 and 2018/19.
Obviously, I've not submitted the 2021 return yet but I have included loss claims on the 2020 return and an amended 2019 return. At the moment, these free-standing loss relief credits don't appear on his account, leaving it looking like he owes about £3000, when HMRC actually owe him £1500.
Do I need to submit the 2021 return to get the credits entered ? The big snag is that the £3000 is due in January 2021 and the return can't be submitted until April 2021. He won't be able to raise the tax he doesn't actually owe anyway.
Or should I just deal with it in the traditional way, with a letter ? Which is my instinctive reaction.