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  • RE: Cash Basis - using a loss made in our final year to offset other tax liabilities

    Many thanks. I've decided to do as you suggest and convert to traditional accounting for our final year. I've worked through 'sheet 1' in the help sheets you provided in the link above and get a small positive adjustment of £121. I now assume that I need to include this on our partnership return SA800 box 3.82 and apportion it between myself and my wife on pages 6&7? As this will be our last ever partnership return I also assume I will need to 'accelerate' this figure and declare the 'whole amount' rather than dividing by six? If yes, should I then explain what I've done using the additional information box 3.116 so there's no confusion further down the line. Thanks again for your help.
  • RE: Cash Basis - using a loss made in our final year to offset other tax liabilities

    Thanks for the suggestion I hadn't realised I could change basis from year to year. In practical terms that might actually be quite easy for last year on the basis we couldn't open because of Covid! I'll have a look at our figures.
  • RE: Receiving 10% of spouse tax allowance

    This happened to me when I logged in and looked at last years statement of tax paid. I couldn't see my wife's transfer anywhere in my calculation. When I phoned HMRC the tax advisor assured me it had been applied, but I wasn't convinced and expressed my concern. In the end HMRC sent me a statement in the post which showed it all to be OK. The online system is badly set up in this respect and the advisor I spoke to agreed, a shame when it's so good in other ways. I would ask for a statement by post once you've submitted your return to put your mind at rest, if enough people do this HMRC will make it clearer.
  • Cash Basis - using a loss made in our final year to offset other tax liabilities

    My wife and I have run a small B&B as a partnership for the last few years but in the wake of the pandemic ceased trading at the end of the 2020-21 financial year. Our B&B made a small loss in our final year, but as I also have an occupational pension I was hoping to set my share of this loss against the tax I pay on my pension. The problem is we use 'Cash Basis' for our accounts. I'm currently completing my self assessment return and from what I can now see cash basis prevents me using this loss to offset any other tax liabilities - either past, present or future. Am I right or is there any other way around this?