HMRC issues reminder about loss relief extension
There is a temporary extension to the rules regarding the carry back of corporation tax trading losses due to the coronavirus pandemic. HMRC has just issued a reminder that some companies can speed up the claim for relief. What are the key points?
Corporation tax trading losses can generally be offset against other profits of the same accounting period, carried forward to offset future profits, or carried back to be offset in the previous accounting period. Due to the coronavirus pandemic, the carry back period is extended to three years for losses realised in accounting periods ending between 1 April 2020 and 31 March 2022. In general, this will be claimed via the corporation tax return, but HMRC has just issued a reminder that there is an alternative method available for smaller losses.
If the loss doesn’t exceed £200,000, the company can make the claim via an online form. This can be done as soon as the loss can be accurately established after the end of the accounting period. This means that where there is a delay in filing the corporation tax return, the relief can be claimed immediately. The form is available via the Government Gateway, and can be accessed here (log in details required). Evidence of the loss, e.g. management accounts will need to be provided.
Related Topics
-
Why is HMRC checking PVA more often?
Your business imports goods and accounts for VAT by applying postponed VAT accounting (PVA) on its returns. HMRC is scrutinising returns and issuing large assessments in some cases. What can you do to reduce the risk of getting it wrong?
-
HMRC text or scam? Check before you act
HMRC is contacting some taxpayers by text this week about overdue Self Assessment liabilities and is also sending updates about VAT registration applications. At the same time, it has expanded its guidance on spotting fake HMRC messages on social media. How can you tell whether a message is genuine?
-
Received a P800? Check how HMRC has used your allowances
Some HMRC P800 tax calculations can produce too much tax where a taxpayer has several different types of income and allowances are not allocated in the most favourable way. People with employment or pension income alongside savings, dividends or other income are particularly at risk here. Could HMRC be charging you too much?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.