Accounting for Carried Back Corporation Tax losses - Community Forum (2024)

Hello,I have a small business trading filing as a micro entity. In the tax year 21-22, the business made a profit and paid tax. In the year 22-23, for which I am now about to file accounts, it made a loss. I would like to carry the loss back so that I can recover the tax paid in 21-22. Please can you advise:* How should the 21-22 tax repayment be shown in the (micro entity) accounts? Do I have to file and amendment for the 21-22 year (I still just have time) showing tax as 0 and adjusting the P+L and end period BS? This would mean I would also have to change my draft 22-23 filing. Or do I leave the 21-22 return as it is, and show the tax repayment as a credit in the period in which it is received? For the latter, is the credit shown as "Other Income"?* How do I actually claim this credit? Is it automatic? * If I carry back some of the loss, can I still carry forward the remainder to future tax periods, when the business is profitable?Thanks in advance, my filing deadline (and amendment deadline if needed) is 31/12 so a speedy reply would be appreciated.