Sole Trader Using Losses form Previous Year

I set up my business as a sole trader in 2018/19 and made a loss in the first year. I made a small profit in the subsequent two years but not enough to pay income tax. Can I now use the loss from 2018/19 for tax relief against 2021/22 tax year?

Hi,

You need to use the loss in the first year that you make a profit even if that means forfeiting personal allowances. Any unused loss still available would then be used the following year and so on. You can see guidance here:

BIM85060 - Trade losses - types of relief: carry forward of losses

Thank you.