smallbusiness.co.uk: Helping your business think big

A promising venture

Previously, we’ve looked at the reasons why many describe the...
Have your say »

RSS

Q: Can tax be reclaimed from previous years if I have made a loss this year? And if I make a small profit, can I also use my tax-free pay to claim back tax from previous years?

Jun 08 2009

Answered by: Marc Barber Ask a question

I assume from the second part of the question that you are trading as a sole trader or in partnership and that you are an active partner in the business. If this is the case, then losses made in one year can be carried back to the previous year, so that tax refunds can be obtained (assuming that tax was paid, of course!). It is not, however, possible to carry back personal allowances (the so-called tax free pay). If these are not used in a tax year then regrettably they are lost.

Comments

There are currently no comments on this article

Barclays Business Start Up Account

Get everything you'd expect from a Barclays Business account…Free business banking for up to 2 years (Ts&Cs apply). Free day-to-day support from our Barclays Business Team by phone 24/7 and Mobile Banking, manage your account quickly and easily from a web-enabled phone. Apply online.

FREE Legal, Financial, Accountancy & HR Help

Aska Professional understands the challenges faced by small businesses. That’s why we provide instant access to professional advice and legal templates. FREE access to Solicitors, Accountants, Financial Advisors & HR Specialists. Ask our experts a question and get a personal response within 60 minutes. Sign up now to ask a question - FREE.

Hiscox business insurance for small & medium businesses

Hiscox offer specialist business insurance for office based professionals and consultants. Hiscox understand's every business is different and work hard to understand the specific risks small businesses face. Find out which business insurance is suitable for you.

Polls

Tax and vat Questions & Answers

Tax and Finance

Chas Roy-Chowdhury, ACCA Ask a question

Clive Lewis is Head of SME Issues at the Institute of Chartered Accountants in England & Wales

Tax and VAT expert

Clive Lewis, ICAEW Ask a question

Business funding advice

Mark Endersby, Funding Solutions Ask a question

News

smallbusiness.co.uk: Helping your business think big

The government aims to help those who are paid late

Late payment aid for small businesses

A new government initiative will offer resources to small companies to help them get paid on time.

Top finance and accounting staff hard to come by

Businesses are struggling to recruit skilled finance and accounting employees despite an anticipated growth in headcount, research finds.

Smaller enterprises suffering more than large ones

More small and medium-sized enterprises have seen a quarterly reduction in sales volumes than large companies, research finds.

Forum shuns insolvency U-turn

The Forum of Private Business has condemned a government announcement that legislation to improve the so-called ‘pre-pack insolvency’ sales process will now not go ahead.

Charting a course

Daniel Bastide, a partner at law firm Thomas Eggar, talks to James Harris about new finance structures and a ship called the Hebridean Princess.

Cash flow pressures ease for small businesses

Late payment improved in the final quarter of 2011 with the biggest difference coming from the largest firms, research finds.

SMEs warned of tax return deadline

UK small business owners could lose £45 million on 1 February by failing to complete their tax returns by the 31st January deadline.

Car tax hike could hit SME owners

A new emissions scale for company car tax could mean hefty increase in charges for many, warns an accountant.

Credit unions now able to lend to SMEs

Small businesses struggling to access funding have been given an alternative option with the introduction of legislation allowing credit unions to lend to them.

Businesses call for VAT reduction

A year after the contentious rise in VAT from 17.5 to 20 per cent, businesses are calling for the rate to be reduced to help their company move forward in 2012.

SMEs unsure on growth

Less than a third of small businesses expect their company to expand over the next six months.

Guides & Tips

UK small businesses have until 30th September 2011 to notify HMRC that they should be registered for VAT

Don't forget the VAT deadline

Why small businesses must get their books in order, and fast.

Your company could be eligible for R&D Tax Relief

Claiming R&D Tax Relief

SmallBusiness.co.uk explores why it’s worth it for innovative companies to claim R&D Tax Relief.

New penalties for incorrect tax returns

Penalties for incorrect tax returns and documents have changed so please check your records are accurate and up to date.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.