Recording last years loss on self assessment

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Recording last years loss on self assessment

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Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sat Jan 23, 16 2:15 pm Post subject: Recording last years loss on self assessment

Just working out how much I owe HMRC.
I made a loss last year on a rented property, which I can carry over to this year's tax bill. However, if I put it on the form as an allowable expense, which is what I *think* I should be doing, it just adds to the loss to be carried over to next year, and I still get a tax bill.

Doing this is going to end up with me paying tax every year and a growing loss, which carries over every year. So, there must be a way to reduce my tax bill for 2014-15 by the amount I lost in 2013-14.

Any idea how I do this, please?

ETA: I think I've figured it out. Can't be done.

dpack

Joined: 02 Jul 2005
Posts: 46187
Location: yes

Posted: Sun Jan 24, 16 12:57 am Post subject:
a good accountant should generate their fees from part of the savings they create. many will give basic advice on a problem in a initial short meeting in the hope of gaining a long term client.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sun Jan 24, 16 1:01 am Post subject:

dpack wrote:

a good accountant should generate their fees from part of the savings they create.

many will give basic advice on a problem in a initial short meeting in the hope of gaining a long term client.

In simple cases like mine, it's wasted money. If I'd read it properly, the website was clear enough. I don't need to find loopholes, and am happy to pay the required amount.

There's an error on my paye, but that aside, we pretty much end up square.

Mistress Rose

Joined: 21 Jul 2011
Posts: 15946

Posted: Sun Jan 24, 16 9:18 am Post subject:
Glad you sorted it.

RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sun Jan 24, 16 9:37 am Post subject:
I had to do this once a long while ago. I am sure there was a box for losses carried forward from previous years.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sun Jan 24, 16 12:07 pm Post subject:

RichardW wrote:

I had to do this once a long while ago.

I am sure there was a box for losses carried forward from previous years.

There is, but losses in a rental business can't be used to offset tax due from other sources. As I make a loss each year, pretty much, it'll just keep carrying over.

dpack

Joined: 02 Jul 2005
Posts: 46187
Location: yes

Posted: Sun Jan 24, 16 1:22 pm Post subject:

if it carries over will it get taken off any taxes due if you decided to sell the property?

that is the sort of thing accountants are useful for even with a fairly low turnover pa.

plus they know the current situation regarding self employed,sole trader,limited company status, trusts or whatever would be best in the circumstances.

i have been doing some follow the money stuff to establish links between people and organisations and a lot of property stuff seems to be limited company based even if it does not have a big turnover or profit.

it was just a thought if you happened to know a tame one for some advice.

RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sun Jan 24, 16 2:19 pm Post subject:

Nick wrote:

RichardW wrote:

I had to do this once a long while ago.

I am sure there was a box for losses carried forward from previous years.

There is, but losses in a rental business can't be used to offset tax due from other sources. As I make a loss each year, pretty much, it'll just keep carrying over.

Ah dint know that rental was not allowed to be treated the same as any other business. Seems a bit odd.

I guess as dpack says, keep rolling it over till either you do make a profit or you sell & it can lower your capital gains TAX (I think). I would also guess that you can only keep a rolling say 6 years worth in hand as there will be a time limit.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sun Jan 24, 16 2:53 pm Post subject:

dpack wrote:

Yeah, you and Richard are broadly right, just for this, it's simple enough. Thanks, tho.

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