my business has been struggling and we just made a loss for tax year April 2010 of £8338
previous year was profit of £39,349
we are a partnership split 60% me and 40% to partner
so we both paid tax last year but nothing due this year
our current figures show an estimated profit of around £8200 for tax year april 2011 - which i guess is covered by each of our personal allowences so wont use up loss carried forward
so having set out the situation - rather then carry forward the loss, can my partner and i use it against the previous years profit and claim a refund.
i noticed there was something about this on the self assesment form but they have already been submitted saying carry losses forward
can i change this or now request to push the loss back against previous year and get the refund and how do i go about doing this and is it worthwhile
Is it worth it? Absolutely! You are potentially in a position where you won't benefit from the loss at all, as it will simply be lost against the £8,200.
Assuming you have mentioned everything, you could get a refund of £8,338 x 28% = £2,335 between you.
You can write to HMRC asking them to amend your return - simply list the boxes which need changing, what they currently are and what they need changing to. You need to notify them how much tax will be repayable.
Just think, if you hadn't questioned this, you could have been £2,335 out of pocket. Just don't tell UKuncut, they might stage a demonstration outside your home!
