In 2016-17, I made a loss, say for example, £1000 (net loss from allowable expenses, plus capital allowances). I want to use this against income as an employee from 2013-14 (HS227 Losses (2017) – I have read that, but still not very sure).
Let's say my tax calculation from 2013-14 (figures entirely made up):
Total income (total income minus personal allowance) on which tax is due = £11000.00
Income Tax charged = £2200
Taxable income in 2013-14 minus loss in 2016-17 = 11000-1000 = £10000
Income tax ought to be charged = 10000 x 20% = £2000
Difference to claim = 2200-2000 = £200
I want to check that this is the correct way to do this in my tax return: Go to my online tax return form > adjustments to tax due > “decrease in tax due because of adjustments to an earlier year”, I should enter £200 in that box.
Is my employment income in 2013-14 the earliest I can use? Is there anything else I will need to do to claim this loss? I am not able to make changes to my 2013-14 tax return.
Thank you for your help.
This message was edited 1 time. Last update was at 06/12/2017 22:09:45