Help with loss

mc25 Registered Posts: 232 Dedicated contributor 🦉
Hi, just need to help in dealing with losses while completing SA. Client have loss from 2008-2009 of about 2k (just done accounts for these period). The employment income does not even exceed the PA. Then in 2009-2010 there is another loss of about 900. What will be the best way to handle the loss to benefit the client most: Could you
a) in 2008-2009 fill the box to carry it back and set off against previous year (2007-2008) - Assuming client was employed in 2007-2008
b) Carry it forward the loss from 2008-2009 to 2009-2010, but will have to carry this forward again as no profit made during this year.

Any ideas will highly be appreciated.



  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉


    Please don't take this the wrong way but you are the only one in possession of all the facts so it is difficult to say what is best.

    You can do either of your suggestions, run the numbers and see what is most beneficial. I assume the loss isn't from a property rental, if it is then the loss can only be offset to profits of the same trade.
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉


    thanks for you reply. Its not from property rental. I won't take it the wrong way, just wanted to see other peoples views on this one.
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
    Anne's right, you need to run the numbers through & say to the client 'if you carry the loss back you'll get a refund of x, if you carry it forward you may save up to y tax assuming that you make a profit over £z' and then let the client choose which they'd prefer. If you do carry it back look for a post I made on here a few months ago advising which boxes to complete or else you'll be waiting forever to get the refund.
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