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Posted Wed, 18 Dec 2024 23:08:39 GMT by lcwl
Hi. I have been filling in self assessment for the last 2-3 years. I have multiple income sources including a full time job and a sole trader income. The sole trader is a loss but I don't think the loss is deducted from the total income from other sources. My questions are 1) Is the loss supposed to reduce the total taxable income? 2) If #1 is yes, how can I check if my previous tax was calculated correctly? 3) If #1 is yes, anything I need to do in this tax period to make sure the loss is deducted from total income?
Posted Fri, 03 Jan 2025 12:14:02 GMT by HMRC Admin 21 Response
Hi,
If you are using the cash basis then no it needs to be carried forward.
Please refer to:
Relief for trading losses (Self Assessment helpsheet HS227).
Thank you.

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