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Posted Mon, 13 May 2024 16:32:04 GMT by JKH
Hi I am filling out my self assessment... 2022-2023 I made a loss in my new business. Last year 2023-2024 I made a small profit. On the page where it says 'Other Tax Adjustments' and you see your profit and underneath 'Loss brought forward from earlier years set-off against 2023-24 profits:' Do I put my loss from 2022-2023 here? Do I put the full amount of loss from the previous year? I isn't showing a calculation....Will any remaining loss left over be carried forward again? I am on a cash Basis. At a loss how to complete this part !!
Posted Wed, 15 May 2024 15:13:27 GMT by HMRC Admin 10
The loss from previous years will be included in the self employment section of the return and you only use the amont needed. Any balance will then carry forward.
Posted Wed, 15 May 2024 15:20:43 GMT by JKH
OK so I offset the profit I have made against last years loss at the exact amount and any remaining loss is carried forward. Eg loss of £1000 2022-2023 profit of £300 2023-2024....I put £300 in loss to be carried forward leaving a £0 profit and £700 can be carried forward to 2024-2025. Is that correct?
Posted Mon, 20 May 2024 09:36:34 GMT by HMRC Admin 19

Yes, that is correct.

Thank you.
Posted Tue, 21 May 2024 06:01:03 GMT by JKH
Perfect thank you for your clarification. Can I ask an additional question? If the profit is £0 after offsetting the loss on the second business and the profit for the first business is less than then class 2 NI contributions....does the profit from the second business (before the loss) count towards NI threshold?
Posted Thu, 23 May 2024 08:39:49 GMT by HMRC Admin 20
If you are using the cash basis, you can only set the loss from your business against any future losses from that same source and not against any other.
you would therefore need to consder this before looking at any NI due. once done, refer to Self-employed National Insurance rates
Thank you.


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