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Losses and payments on account

JodieRJodieR Experienced MentorRegistered Posts: 1,002
Client has 2 self employments, one has made a loss of £10k and the other a profit of £18k. Genuinely completely separate trades. As he paid some higher rate tax in 2011/12 I want to carry the loss back to then, so I've calculated the amount of tax saved by doing this (say £2400). So, his tax liability on the £18k is £2800 - will he have to pay this plus payments on account and wait for the £2400 to be refunded, or can he just pay £400? Ftax is having problems with this situation (I've logged a support request) and when I enter the information into HMRC's software it seems to ignore the £2400 altogether, despite it being entered in box 15 of the tax calculation page. I know it's a bit unusual but if anyone can help I'd be very grateful - client is of course not prepared for paying £3600 by friday.

Comments

  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    It's Ok I've sorted this - it did reduce the 2012/13 liability but didn't reduce the payments on account.
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