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Posted Tue, 30 Jan 2024 19:32:23 GMT by
In 2020-21 tax year I made a loss from self employment which I was unable to use against other income (as there was none). Upon reading the guidelines regarding losses, I decided to simply carry that loss forward and use it against my future profits. What I didn't realise, was that the loss had to be used in the following tax year if my business registers a profit. In 2021-22 I did indeed made a profit from self-employment, but did not use the 2020-21 loss against it - instead I carried the loss forward again on my tax return. My question is this - can this unused loss still be utilised by being set against my self-employment profits for the year 2022-23? (I now understand I should have used the loss last year because I did make a profit from my business, but I did not do so and instead just carried it forward - so is the loss lost..?). Thank you.
Posted Wed, 31 Jan 2024 14:13:10 GMT by
A follow up question - can the loss previous years be used to against this year's profits if I am using cash basis accounting?
Posted Thu, 01 Feb 2024 16:03:38 GMT by HMRC Admin 25
Hi CatLagerfeld,
Pease see:
HS227 Losses (2023)
Any losses in tax year 2020-21 should be set against the next available profit.
If you made a profit in 2021-22 then your loss should have been offset against this year.
As it is now too late for you to amend your 2021-22 Self Assessment return online you can write to us and ask us to amend it for you.
Please see Self Assessment tax returns:
Self Assessment tax returns
Thank you. 

Posted Fri, 02 Feb 2024 09:49:21 GMT by HMRC Admin 25
Hi CatLagerfeld,
If it is from the same source of income, yes.
Thank you. 

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