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Trading Losses carried forward Oct 17/Sept 18

Help me with some advise on using prior year trading losses

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I have recently been asked to help a mutual aquaintance to take on the accounting for his Ltd company. This is a Not-for-Profit company with very little turnover and next to no reserves. They have been left in lurch and someone else posted CT600 for them, which I believe is not correct. 

Previous year profit/(loss) = (£5900) (Oct16/Sep17) £0 (Oct 15/Sep16) 

Balance Sheet reserve  = (£3577) (Oct 16/Sep17)  £1129 (Oct 15/ Sep 16)

The CT600 for YE Sep 18 showed Trading loss b/fwd (£3577) 

I would have assumed it should be (£5900), am I missing something?

The Year to Sep 18, forthe first time has shown a net profit of £7400

Do the post 1/4/17 restrictions  affect the amount of Trading Loss which can be used. I have read and understand HMRC guidance & advice. But I cannot see why the reserve figure would be used. I simply think my predecessor input wrong figure. It makes a difference in this year accounts as the company is in profit after it has generated a surplus.

I am helping 

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By Kevin Kavanagh
16th Jul 2019 13:50

Difficult to understand your figures without actually seeing at least the relevant balance sheets. But as for tax - you say it's a 'not for profit' company so what makes you think it will have a tax liability?

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Replying to Kevkava:
Stephen S-B
By StephenSeagreen-bell
23rd Jul 2019 12:41

They have made a profit, ie turnover was more than the expenses incurred in that same period. Prior years where the opposite happened have shown a loss. These losses (in the past) have been offset against years where a small profit was reported.
Balance Sheet
Cost - 11500
Depr - 11246
NBV - 254
Bank - 18
Other CA - 1124
Total CA - 1142
Other Cl -4955)
Total C A&L -(3731)
Working - (3577)
Reserves - (3577)

My question is really, why is the trading loss ( 5931 from the previous year) not used to reduce profit in current year.
Why would the reserve amount of 3577 be used in the CT600 calc?

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