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Trying to fill in tax return re 2021 losses

What am I doing wrong!

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Client has a year end of June 2020. 2021 losses of just under 30k, so want to bring those losses back to his 2021 return so it would reduce this taxable profit.

Have entered the figure of 30k in the box for relief for trading loss. Put same figure in box which says Amount of relief not subject to limit on Income Tax reliefs and then put the tax year as 2021, Tax filer not reducing the profit? Any ideas?



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By rmillaree
17th Nov 2021 08:38

I wander if you need to make claim in writing hs227 - says this is an option.

Claims not made in a tax return (stand-alone claims)
Normally you’ll make your claim to loss relief in your tax return, or amended return. But some claims may be made:

in advance of the tax return for the year of loss, for example, a claim to include the loss in your PAYE code for the year of loss or a claim for the loss to be relieved by reference to income, profit or capital gains of an earlier year or years - you must also:
repeat the claim give us details of the tax repaid or set-off in your tax return for the year of loss after the time limit for amending the tax return has expired, for example a claim to carry losses forward may be made up to 4 years after the end of the year of loss .If you wish to make a stand-alone claim you must write to us, giving your name, address and Unique Taxpayer Reference (UTR) also:
the name of your trade,how much the loss is and for what period how you want to use the loss

Thanks (3)
Replying to rmillaree:
By Duggimon
17th Nov 2021 09:41

I believe this is the answer, either make it in a stand alone claim or make it in the 2022 tax return, there's no mechanism by which the loss incurred in 2022 can be entered solely on the 2021 return.

Thanks (2)
By lionofludesch
17th Nov 2021 12:56

I agree. It'll be a stand alone claim.

Have you considered changing the year end to 31 March 2021? It'll give you the loss relief earlier. Otherwise your client might need to wait an extra year for his money.

Thanks (1)
Replying to lionofludesch:
By 0098087
17th Nov 2021 13:39

Aha..there's the answer..thank you!

Thanks (1)
Replying to lionofludesch:
By Catherine Newman
17th Nov 2021 17:56

That was my reaction. If there is overlap relief claim that too. It is a golden opportunity to change the accounting period. I did several a few years ago.

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By possep
17th Nov 2021 14:00

Work out the reduction in tax as a result of the loss carry back and enter that sum in box 16 on page TC2, and tax overpaid from 2021/22. Then add WSN to explain the calculation.

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