Claiming loss relief for previous year

Ronnie

A husband and wife partnership made a £5,000 loss in 2008/09. Husband also has separate employment. I have drafted his HMRC ONLINE tax return, entering the amount of the loss to be carried back in the correct box, and provided details in the Any Other Information box (carrying back £2,500 to 2007/08 when he paid 40% PAYE tax).

The tax return box does not specify to which year the carry back relates. Should I also write a letter claiming the £1,000 tax relief, or is there another form to complete? Or does someone at HMRC automatically action the tax rebate on filing the return and reading the AOI box??!!

Husband also owes £175 tax, due to his 2008/09 PAYE code/private pension payment adjustments (20% tax paid). I ticked the box to pay this through his 2010/11 PAYE code. Would HMRC want to offset this against the tax rebate?

The business was established in mid 2006, husband a silent partner on 2006/07 and 2007/08 tax returns (allocated only £1 of profits), as he got involved mainly for loan, shop lease and bank guarantees. The business profits have been that low, wife has had no tax to pay on her 99.9%. However, husband has been active in various ways during the past year, so I hope HMRC will accept the 50% allocation of loss. I've read that if work is on average less than ten hours per week, loss relief may be restricted. So do you have to argue the amount of hours worked before they pay the rebate?

Any comments would be appreciated on how best to submit this claim.