I am having a dumb moment with a clients SA Return. (Sole Trader.) Two years ago (first year of trading) he declared a loss. He did his own SA Return that year. Lets say it was a £5k loss.
I am doing his 12/13 return, and he has again made a loss (say £3k) I am sure that the two years of losses an be carried forward, so that when he makes a profit (this year 13/14 is finally looking better) it can be off set against his declared profit. Am I right with that thinking? And if so, where do I show the combined £8k loss for the last two years?
I do a number of SA each year, but pretty much all show a profit, so this doesn't happen to me that often! There are a few references on the submission to carried forward losses, but I'm not sure if I'm putting in £5k, £3k, or the total loss to carry forward. I don't want to stick in the wrong value, in the wrong place, and he loss the amount he can off set for this tax year.
