Carrying back losses - accounts treatment

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Never done this before so please could someone help

2018   Profit after tax £16000  loss b/f  £11000

2019   profit 4000  loss bf £6000

2020   Loss £55000  loss b/f  £61000

2021   Profit £8000   loss b'f  £53000

Client owes considerable sums on CT paid but I want to claim the CT back for the tax years above c£7000 to reduce CT owed.  (2021 accounts will be submitted today)  and no trading has taken place in 2022 or 2023

I know how to do it on the CT600 computation sheets but what are the accounting entries to reduce the CT owed on the balance sheet?

Replies (6)

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RLI
By lionofludesch
04th Jan 2024 12:50

Debit money owed to HMRC for Corporation Tax.

Credit to taxation on the loss in the P+L.

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Replying to lionofludesch:
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By legerman
04th Jan 2024 12:54

lionofludesch wrote:

Debit money owed to HMRC for Corporation Tax.

Credit to taxation on the loss in the P+L.

Thanks Lion, much appreciated

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By Ruddles
04th Jan 2024 13:17

Apart from the fact that your figures above don't make much sense, exactly what tax are you hoping to claim back, and how?

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Replying to Ruddles:
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By Yossarian
04th Jan 2024 14:42

Is 'b/f' being confused with 'c/f'? Either way I can't see how any of the later years would have generated a CT liability in the first place?

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By Truthsayer
05th Jan 2024 08:54

This is a question a first year student would find very easy. Do you actually not know this? If so, I would not consider you fit to prepare accounts.

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By Tax Dragon
05th Jan 2024 09:25

Are you talking about a deferred tax asset? If not then what? (And why is this the first year for which an adjustment to that asset has been appropriate?)

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