Carrying Back Losses

Julie2011

Afternoon

Could someone possibly clarify carrying back losses for me as I think I have it but not sure!

Client has made a loss in YE 2011, he has other income from a part time job. Can I off set a portion of his loss against this year (preserving his PA) and carry back the remaining loss to the previous year when he had a full time job and off set the remainder? or do I have to off set the loss against all of 2011 income (only job)then carry balance back??

Thank you for your help.
Julie

JodieR

I don't think that you can preserve the personal allowances but you can carry all the loss back to 2009/10 instead of using some of it in 2010/11.
Just a word of warning though - I've done this a couple of times in the past year and it's been a nightmare getting the tax back. It's not enough to enter the carried back amount on the self employment pages - you have to work out the refund and complete the relevant box on the tax calculation page - can't remember off the top of my head what it's called.

Julie2011

Ok, ill do that! was only about £200 for 2011 anyway, thanks for the tip re the box, did see you had posted something about this on a previous thread when searching carry back losses!

Thanks again
Julie