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Do I have to claim losses carried forward?

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I have some self assessment losses carried forward from previous years. This year I earned a small profit but it is still within my personal allowance. Am I allowed to carry theses losses forward as is and not use them against this year's profit or do I have to deduct the profit from the losses before I carry them forward for next year, even though no tax is owed?

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By Ruddles
30th Jan 2017 21:54

Sorry to disappoint but you have to set brought forward losses against profits even if the profits are covered by personal allowance. Some free advice - consider disclaiming capital allowances.

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By mrme89
to Ruddles
30th Jan 2017 22:11

Ruddles wrote:
Some free advice - consider disclaiming capital allowances.

Happy Birthday !!!

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30th Jan 2017 23:20

Just to clarify then. I had a loss of £9,837.00 in 2014/2015 and a profit of £1,448.00 in 2015/2016. So I must use £1,448.00 of the loss this for 2015/2016, but does that mean I can still carry forward £8,389.00 to 2016/2017?

I use the cash basis so I understand that I can only use this loss against self-employed income and not anything else.

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By Matrix
30th Jan 2017 23:57

Yes the remainder can be carried forward. Whether you use the cash basis or not then the losses can only be offset against future profits of the same trade. The cash basis is restrictive with regards to capital allowances and losses so it may have been more advantageous to use the accruals basis.

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31st Jan 2017 09:31

You say self assessment losses - there's no such thing.

We're all assuming that they're trading losses. If that's so, I agree with the above and, in particular Ruddles' advice, which you still have 14½ hours to consider.

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to lionofludesch
31st Jan 2017 09:38

lionofludesch wrote:

You say self assessment losses - there's no such thing.

We're all assuming that they're trading losses. If that's so, I agree with the above and, in particular Ruddles' advice, which you still have 14½ hours to consider.

OP - just think how much tax you will/could save if you'd used an accountant...

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By Ruddles
to lionofludesch
31st Jan 2017 09:52

Funny how the brain plays tricks at this time of year - I could swear that when I first read the question it referred to self-employment losses.

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By Matrix
31st Jan 2017 09:44

In that time Lion, he/she would also have to change last year's return to the accruals basis, assuming capital allowances are in point.

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31st Jan 2017 10:20

Many thanks for the advice. Apologies for the incorrect terminology and I am referring to self employment losses. There have been no capital purchases so unfortunately not relevant in my case, though useful to bear in mind for the future.

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