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How to carry back losses for self-employment

How to carry back losses for self-employment


My Accountant submitted the Amended Tax returns for 2013/2014 Tax year on 26/01/2016 which increase the tax bill to 3868£ and I am keep getting the letter from HMRC to pay overdue Tax.

secondaly I have the losses of 8809£ in Tax year 2014/2015 my Accountant mentioned this loss on SA submitted on 26/01/2016 in box 22 (Or, net loss) and in box 32 Net business loss for tax purposes; he also filled the box 34 (Loss to be carried back to previous year(s) and set off against income (or capital gains) ).

when I log in to my HMRC account and checked the total Tax due for the year 2013/2014 Tax year it is still showing Tax overdue 3868£. it looks like HMRC has not made adjustments to my tax bill for 2013/2014 after I show the loss of 8809£ and asked for it to set off against the profits of Tax year 2013/2014.

what steps do I need to take in order to get this sorted as I believe after the loss adjustment Tax bill should reduced to around 2000£ from 3868£.

is my accountant missing something on tax returns or does he needs to make any amendments to 2013/2014 tax returns as well?



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By DMGbus
23rd Feb 2016 13:56

2013/14 will NOT be amended

Carry back of a loss does not result in a prior year's tax return / liability being amended.

Instead a tax reduction is claimed on the year of the loss tax return - boxes 15 and 17 on page TC2 should be completed accordingly. (SA110).


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