I have just received the Year End Accounts from my client from the accountant. Taxable Profit is £3111 but no corporation tax has been charged. They made a loss last year of £16427 is this why? Has the loss been carried forward?
If there is a taxable loss in the previous year that hasnt been able to be carried back to the year before then it is carried forward to be offset against future taxable profits.
As you say it is likely that the taxable loss has been carried forward and used against the next years taxable profits.
You could ask your client to ask the accountant for copies of the tax computations for both years. That should explain the situation.
However, I don't understand why you haven'tbeen involved in the process. Surely as the bookkeeper youshould be liaising with the accountant and involved in the accounts meetings.
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