Carrying loss forward

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Hello AccountingWeb users, 

What a pickle, it all is. Well my mind was sharper 30 years ago, but even bus timetables now get me flicked. Could I trouble you all for some advice? I started a limited company to make handmade greeting cards, I had a loss last year but a profit this year! So I will have corporation tax payment , but I was wondering how do I carry the losses from previous  year forwarded? And what process under double entry book keeping do I enter. 

Thank you for taking time to read.

Best wishes, 

Naomi 

Replies (10)

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By johngroganjga
29th Feb 2020 20:18

It’s nothing to do with book-keeping, it’s about the company’s corporation tax return.

On last year’s return you will have had a tax adjusted loss carried forward. You did, didn’t you? On this year’s return you will have the same loss brought forward, which you then deduct from this year’s profit in the calculation of how much tax the company will pay.

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By [email protected]
29th Feb 2020 20:25

Hello John,

Thank you for your reply. Yes indeed I did have such figure on last years return, sorry my question was more about the companies house balance sheet, and how to display last years loss on there.

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Replying to [email protected]:
Psycho
By Wilson Philips
29th Feb 2020 20:48

Last year your balance sheet would have shown profit and loss reserve of -£x. If you’ve made a profit this year of £y your reserve will now be £y-x.

That is the most basic of explanations and it could be more complicated than that. You would be well advised to appoint an accountant to handle your accounts and tax matters.

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Replying to [email protected]:
RLI
By lionofludesch
01st Mar 2020 10:50

naomiwilliams34532-AT-gmail.com wrote:

Hello John,

Thank you for your reply. Yes indeed I did have such figure on last years return, sorry my question was more about the companies house balance sheet, and how to display last years loss on there.

Last year's loss won't be on the Balance Sheet but it will be on the Profit and Loss account, in the comparatives column. You don't have to file this at Companies House. of course, but HMRC would like a look.

I would respectfully suggest that the very basic nature of your enquiry indicates that you're floundering here and it would be wise to visit an accountant before things turn titsup bigstyle

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RLI
By lionofludesch
29th Feb 2020 21:48

Yes you can.

No bookkeeping needed. You don't need any entries in the books.

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RLI
By lionofludesch
29th Feb 2020 21:51

Duplicated

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RLI
By lionofludesch
29th Feb 2020 21:49

Triplicated

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By Accountant A
15th Jun 2020 20:49

-9y

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Replying to Accountant A:
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By bernard michael
02nd Mar 2020 10:20

Accountant A wrote:

naomiwilliams34532-AT-gmail.com wrote:

I started a limited company to make handmade greeting cards,

Roses are red
Violets are blue
Tax and accounting
You don't have a clue

And which cretin told you to start a company?

What's the betting on MDTP ??

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By Matrix
01st Mar 2020 08:32

The loss reduces the current year tax charge. No other entry is required.

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