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Posted Sat, 14 Jan 2023 10:17:56 GMT by Jay Norton
I am a self-employed sole trader. In the tax year ending 2019 when I set up my business, I made a loss of £1300 which was entered on my tax return form. In the tax year end 2020 I carried the loss over on the tax returns and then again Year end 2021 even when I made a profit. Can you please clarify how many years you can carry the loss over? Is it correct that you can continue to carry the loss forward even when you make a profit? Can you remind me which box you use to carry the loss forward when entering on the tax return forms? Lastly if I want to use my loss this year (2021- 2022) how do I do this on the form and which box do I use? Forgive me but I am finding the HMRC documents on this subject matter very hard to understand.
Posted Wed, 18 Jan 2023 11:12:55 GMT by HMRC Admin 25
Hi Jay Norton

When you carry the loss forward, it must be used in the first year that you make a profit.

If not fully utilised you can then carry it into the next year and so on.

A claim to use the losses must be made within 4 years of it arising. further guidance on how to complete your tax return is at: 

Self employment (short) notes (2022)

Thank you. 

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