Carrying forward Overlap profits

JodieR Registered Posts: 1,002
Client (a painter) has been trading for approx 15 years with turnover under £15k and profits around £10k so they're simple accounts which look like they should go on the short self employment pages, however, he has a year end date of 31 Jan and therefore has overlap profits of £800 which just need to be carried forward year on year. There's no box on the short pages to record this. I have phoned the help line but the lady I spoke to didn't have a clue (I'm waiting on a technical expert calling me back), but I was wondering whether anyone knows whether it's sufficient to just include a note of the overlap profit carried forward in the additional information box to avoid having to complete the full self employment pages?


  • Poodle
    Poodle Registered Posts: 711
    Hi Jodie,

    You are right. The form only allows for Business Losses brought forward.

    It looks as though HMR&C would like us all to work in the box of 6/4 - 5/4. Fortunately some of us think out of the box.

    Have you got a copy of SA210(2008) How to fill in your Short Tax Return.

    On page STRG 2 it does say, "Look though the form - you should not use it if you cannot find a box for something you think should go on your Tax Return....

    It suggests that you telephone HMR&C, say that you cannot use the form, tell them why (so they can update their records:lol:) and they will then send your client a full tax return.


  • JodieR
    JodieR Registered Posts: 1,002
    The client was just sent a notice to file a tax return as I've done it online the past few years, so yes, I can fill in the full return if necessary. Obviously it's not really much more hasssle to fill in the full pages for one client for one year, but no doubt it's an issue which will crop up again and again so I want to make sure I'm not making more work for myself.
    I read the first page of the notes on completing the short version and it says that they can't be used where you're claiming overlap relief, but doesn't mention whether that applies where you're mearly carrying forward the overlap profits.
  • JodieR
    JodieR Registered Posts: 1,002
    Just spoke to a sensible person at hmrc who confirmed that we can just use the short pages if the overlap relief is not being used in the year, but the full pages must be used in the final year of trading/change of accounting date.
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