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Sole Trader Loss Carry Back Pre SATR issued

Sole Trader 2021-22 cessation loss to carry back to 2020-21 Self Assessment Tax Return

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Hello

A sole trader with a large profit in the 2020-21 tax year. 2020-21 tax return has been submitted with a balancing payment of £7k due 31.01.22

Now prepared cessation accounts to shop closure in September 2021, which show a loss.

Wanted to carry this back to 2020-21, before tax becomes due in January but is it possible to do so before the 2021-22 tax return is issued?

If we request anything in a letter, I can see it taking months to deal with - most of the post we send to HMRC takes a minimum of 3 months to be processed, if not longer.

Any advice appreciated. Thank you.

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RLI
By lionofludesch
03rd Dec 2021 09:44

Possible, though unlikely at this stage.

Strictly speaking, the loss is credited on 31 Jan 2023, but there's a concession that it will be credited on the day the return is submitted and I have argued that, where the loss is agreed earlier than that, the date of that agreement is the date the loss is credited.

Be warned, though, the computer is completely unaware of the concession. Surcharges and interest will be charged and you'll have to appeal.

A better route might be a TTP agreement. I've not tried that so no idea of the probability of success.

There was a thread about the concession two or three months ago.

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By Not Anonymous
03rd Dec 2021 16:37

Not sure what the equivalent will be in your software but isn't this what box 16 on SA110 is for? You just need to make sure relief isn't claimed again on the 2021/22 return.

Not sure if it would work for an amended return or not though.

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