Carrying losses over for sole traders

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.

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.