Tax: Negative carried forward?

[Hopest]

Quick question:

In my tax year of 2011/2012 I incurred a £400 loss so did not make any profit.

Question 1) When I ring them how will they work out the tax owed for that or is it simply I don't owe them anything?

Question 2) My negative loss I have read that I can carry this forward to this year's 2012/2013 tax year. Has anyone experienced this or done this to confirm how that works?

Thanks,

Tom

[Carryon Regardless]

Any net loss is carried to the next tax year, until there is a net profit.

With self assessment it's easy but otherwise ???

[Antnkel]

Does the loss need recording on your next self assessment or is it done automatically ?

[Carryon Regardless]

A self assessment will show the running loss (box 5.41) and that loss to be carried forward to next year (box 5.45).

The next year the self assessment will ask for the loss from the previous year to be entered (box 5.42).

I record the figures I enter each year on a spreadsheet, if nowt else it's interesting to compare how things have panned out over the years.

[Richlist]

Question 1) When I ring them how will they work out the tax owed for that or is it simply I don't owe them anything?

You are not required to ring them. You are required to complete the land & property pages of the self assessment tax return. You can employ an accountant to help you.

Question 2) My negative loss I have read that I can carry this forward to this year's 2012/2013 tax year. Has anyone experienced this or done this to confirm how that works?

Yes your loss can be carried forward to next year where it can be offset against profits and used to reduce the tax you pay.