Employed & Self Employed Loss

Hello, today I have submitted a second year's Self Assessment for my client. They are full-time employed and part-time self employed. For the last two years, both years' they have made a loss on their self-employment. So, how come they are having to pay HMRC more, although an admittedly a small amount, rather than not in receipt of a refund?

Hi,

Self Assessment tax calculations are based on the entries in the tax return, as we do not have access to your client's return we are unable to comment why your client is paying more tax.

In a Self Assessment tax return, there is an option for a self employed individual to carry forward their losses to set against a future profits, (box 35 - SA103S) or in the year in which the loss arises, they can opt to set the loss against other general income, (box 33 SA103S).  

Helpsheet HS227 provides more information. 

HS227 Losses (2022)

Thank you.