If your business is ordinarily profitable but the pandemic has meant that you will have losses in this accounting period then you might be able to make a loss carry back claim in instances where the accounts and computation have not yet been finalised and submitted.
Whilst this has not been acceptable in the past, due to recent events, HMRC will now allow losses to be carried back to previous years. This will generate a tax repayment even instances where the losses have not actually been formalised by the submission of the computation and return.
Information is required to be submitted to support the claim, but this can be in the form of management information.
This obviously provides a cashflow advantage via the acceleration of a repayment of claim for previously paid cash.
Any remaining losses can be carried forward and offset against future profits.
Disclaimer
The information was correct at time of publishing but may now be out of date.
