Sole trader losses
shellsbook
Registered Posts: 12
Hello,
I'm still studying level 4 tax, but am helping a friend with their tax return. I've just looked at their last tax return and found that they made a profit of just under £8000 but their advisor at the time then took off £5000 loss from the previous year. This seems unnecessary to me, as they would have been under the tax threshold anyway wouldn't they? Does this mean they can't now bring that loss forward to use against future profits?
Thanks,
Shells
I'm still studying level 4 tax, but am helping a friend with their tax return. I've just looked at their last tax return and found that they made a profit of just under £8000 but their advisor at the time then took off £5000 loss from the previous year. This seems unnecessary to me, as they would have been under the tax threshold anyway wouldn't they? Does this mean they can't now bring that loss forward to use against future profits?
Thanks,
Shells
0
Comments
-
Where a trading loss is carried forward it must be relieved against the first available profits of the same trade.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 328 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 57 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 203 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 584 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership