I have a question to do with company trading losses brought forward.
I have just been speaking to my accountant and I am a bit confused.
My Ltd company had losses brought forward from the previous accounting years of £23,000 to offset against future profits. My accountant has my 18/19 company accounts in draft for my company year end March 2019.
This year, my company made a profit of £15,000. My accountant has said that all the losses brought forward have to be used and no remaining losses can be carried forward to use against the March 2020 accounts profits, is this correct? Now, I am not an annoying client who questions everything a trained professional says, but it doesn't make sense the remaining £8,000 of the loss just disappears. I can find no evidence this is the case and when I was a sole trader I certainly had losses carried forward 2-3 years to offset against trading profits.
In summary, my accountant has said the £23,000 loss carried forward, take away the £15,000 March 2019 profit leaves an £8,000 loss that can't be carried forward to ofset profits in the March 2020 accounts?
Any advice would be appreciated.
Thanks in advance