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bigduckontax, Accountant
Category: Tax
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Good day,I am preparing Annual Accounts and HMRC

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Good day,I am preparing Annual Accounts for CH and HMRC for to small companies registered in UK but operating outside. I have few questions.We had a small loss, turnover 1.8 million, loss 950. Can a company to report loss in the first year, any issues with that? If in the next reporting year we will have a small profit, like 500 we will be not liable to corporate tax anyway?
Customer: replied 2 years ago.
I would appreciate reply from
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Your question has come in open forum and I am responding accordingly A company can report a loss in its first year of trading; this presents no problem and, indeed, is an exceedingly common occurrence. Whether the company will be liable for Corporation Tax (CT) in year two depends upon the amount of loss brought forward. Year one loss was 900 quid and year two profit, 500. This leaves some GBP 400 of loss to be carried forward to year three. There will be no CT liability in year two. I do hope my reply has been of assistance.
bigduckontax and other Tax Specialists are ready to help you
By the way, don't forget to utilize the automatic abbreviated accounts extract process for CH available in the on line CT return. I always use this and it saves a lot of the palaver of doing a separate return. You have probably grasped this procedure anyway.
Thank you for your support.