Hi. My partner and I have a Ltd company that we use for small amounts
of work we do outside of our day jobs (computer programming and
project management). In recent years the turnover hasn't been very
high, and for the years ending in 2005, 2006 and 2007 was actually 0,
resulting in a loss of around GBP 100 each year (bank charges etc). So
for these years I've been working out the accounts and filing the
CT600 myself (previously we engaged an accountant).

I'm currently working on the accounts and CT600 for the year ending in
2008, where the turnover was GBP 1500 and the gross profit GBP 1300. 

Am I allowed to simply add up the losses from 2005, 2006 and 2007 and
put the value into box 4 of the CT600 (Trading losses brought forward
claimed against profits), so reducing the profits chargeable to
corporation tax?

I've been trawling through the documentation on the HMRC website to
try and work this out for myself, but didn't find anything I could
make sense of (the closest was CTM04020 and CTM04050).

TIA...Nick.

-- 
Nick Challoner, nick@challoner.com
Aviation photography: http://www.challoner.com/aviation
Toyota MR2 Mk1 info: http://www.challoner.com/mr2
"Number 1 ... The Larch"

> Am I allowed to simply add up the losses from 2005, 2006 and 2007 and
> put the value into box 4 of the CT600 (Trading losses brought forward
> claimed against profits), so reducing the profits chargeable to
> corporation tax?

Yes (subject to usual tanker loads of caveats that you've disclosed 
....)

> I've been trawling through the documentation on the HMRC website to
> try and work this out for myself, but didn't find anything I could
> make sense of (the closest was CTM04020 and CTM04050).
>
> TIA...Nick.

CTM04100 might reassure you
-- 
Robin

On 3 Aug, 17:50, Nick Challoner  wrote:
> Hi. My partner and I have a Ltd company that we use for small amounts
> of work we do outside of our day jobs (computer programming and
> project management). In recent years the turnover hasn't been very
> high, and for the years ending in 2005, 2006 and 2007 was actually 0,
> resulting in a loss of around GBP 100 each year (bank charges etc). So
> for these years I've been working out the accounts and filing the
> CT600 myself (previously we engaged an accountant).
>
> I'm currently working on the accounts and CT600 for the year ending in
> 2008, where the turnover was GBP 1500 and the gross profit GBP 1300.
>
> Am I allowed to simply add up the losses from 2005, 2006 and 2007 and
> put the value into box 4 of the CT600 (Trading losses brought forward
> claimed against profits), so reducing the profits chargeable to
> corporation tax?
>
Did you carry forward the losses in previous years?

If you didn't maybe you should include a letter of explanation with
this years tax return.

On Mon, 4 Aug 2008 02:08:26 -0700 (PDT), PeterSaxton
 wrote:

> Did you carry forward the losses in previous years?

Do you mean in the accounts or in the CT600s?

If the accounts, then yes, in the P&L retained account (obviously
reducing the amount of retained profit from previous years).

If the CT600s, then no I didn't. I wasn't aware that I explicitly had
to - at the time I didn't find any documentation to suggest that I
should (e.g. in the CT600 guide or in the CTM documentation). So I
came to the conclusion (probably naively!) that the losses were
clearly stated in the CT600s and therefore could be used against
profit at a later date.
 
> If you didn't maybe you should include a letter of explanation with
> this years tax return.

That sounds like a plan.

Thanks to you both for taking the time to reply.

...Nick.

-- 
Nick Challoner, nick@challoner.com
Aviation photography: http://www.challoner.com/aviation
Toyota MR2 Mk1 info: http://www.challoner.com/mr2
"Number 1 ... The Larch"