Tax Summary report - carrying forward a loss

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Just finalising our first year ltd company accounts . Due to covid we have had to postpone an event and defer the the income. Unsurprisingly, this means we will make a year one loss of about £13k. The tax summary shows a small negative corporation tax liability. Shouldn’t this be zero as no tax will be due on a loss?

Txs
Dave

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Hi @dmarti32

This is certainly possible and allowable by HMRC, it is known as carrying a loss forward.

There is different guidance on what to do depending on the type of loss you are carrying forward. This link allows you to read about what type of loss you are carrying forward, you can then go through to the correct guidance from there: Carry forward Corporation Tax losses - GOV.UK

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Personally speaking I don’t pay any attention to the tax summary. It’s not very useful as it doesn’t calculate taxable profits/losses correctly in the first place.

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Thank You for responding. :+1:

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Thank You for responding its appreciated. :+1:

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