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Where Taxpayers and Advisers Meet

Carrying forward of losses?!

cwodavids
Posts: 7
Joined: Sat Jul 28, 2018 5:34 pm

Carrying forward of losses?!

Postby cwodavids » Sat Jul 28, 2018 5:45 pm

Hi,

I am trying to complete my 17/18 Self Assessment for my rental property and I am struggling to work out how on earth to add in losses carried over from last year. I Have £18,000 of losses to carry forward but no matter where I add it in on section 4 it doesn't accept it..... Any ideas?

When I add my £18,000 loss to the section that says "Loss brought forward used against this year's profits:" it says the following

"'Loss brought forward used against this year's profits' must not exceed 'Adjusted profit for the year'. Please amend."

It's driving me nuts and I have tried everything to fix it but to no avail....

robbob
Posts: 2662
Joined: Wed Aug 06, 2008 4:01 pm

Re: Carrying forward of losses?!

Postby robbob » Sun Jul 29, 2018 11:24 am

You only enter the loss you actually utilise this year (I.e sum of profit this year) in that box, the remainder of the loss goes in the - "loss to carry forward to following year, including unused losses brought forward" box.

cwodavids
Posts: 7
Joined: Sat Jul 28, 2018 5:34 pm

Re: Carrying forward of losses?!

Postby cwodavids » Mon Jul 30, 2018 8:44 pm

If I have understood you correctly if I made £1,000 profit and a 16/17 loss of £18,000 I put £17,000 in the losses carried forward box? If so, what do I put in the "adjusted profit for this year box?

cwodavids
Posts: 7
Joined: Sat Jul 28, 2018 5:34 pm

Re: Carrying forward of losses?!

Postby cwodavids » Wed Aug 01, 2018 6:34 pm

Anyone?

cwodavids
Posts: 7
Joined: Sat Jul 28, 2018 5:34 pm

Re: Carrying forward of losses?!

Postby cwodavids » Wed Aug 01, 2018 9:13 pm

I have just looked at my Self Assessment tax calculation as a 40% tax payer and I am due a rebate of £1191 but I think this is incorrect....

I have 2 residential properties and recently started my own part-time business.

My calculations were as follows

Main employment

Income = £9250
Expenses = £7085
Losses to carry over from 16/17 = £21,648
adjusted profit for 17/18 = 0

Part-time self employment

Income = £0
Expenses = £3967

Using very simple maths

total profit £0 - outstanding expenses £3,967 = -£3967
= £793 @ 20% tax rate
= £1586 @ 40% tax rate

How does HMRC get to £1191?!?

robbob
Posts: 2662
Joined: Wed Aug 06, 2008 4:01 pm

Re: Carrying forward of losses?!

Postby robbob » Thu Aug 02, 2018 9:22 am

If I have understood you correctly if I made £1,000 profit and a 16/17 loss of £18,000 I put £17,000 in the losses carried forward box? If so, what do I put in the "adjusted profit for this year box?
Your last post doesnt really make much sense so i will ignore that

Back to post 1
The adjusted profit for this year will be £1,000 if that is the profit you made this year was 1k.

"'Loss brought forward used against this year's profits' - will be £1,000 (this boxed is maxed out at the profit for the year)

Taxable profit for the year will be Nil (1k-1k)

"loss to carry forward to following year, including unused losses brought forward" box. = 17,000 - being the 18k loss b/f less the 1k loss used this year


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