What happens if your company makes a loss
It isn't all bad news as you can often use it to your benefit later on
No Corporation Tax is due for a loss-making period. A tax return still has to be filed, but the loss itself can then become an asset rather than just bad news.
The loss is not wasted
A trading loss can be carried back against the previous year's profits, generating a repayment of tax already paid, or carried forward automatically against future profits of the company. Early-year losses are common in new companies and simply reduce the first profitable year's bill.
What we do
We calculate the loss as part of your year-end accounts, work out which relief gives the best result, and make the claim in the CT600 so nothing is missed.
💡 Good to know: Tell us if you are planning significant spending near your year-end. Sometimes moving a cost between periods changes which year gets the relief and improves the cash outcome.
Not found what you're looking for?
Please get in touch and we'll be happy to help:
Email: You can submit a request using our contact form
Phone: 020 3897 2233
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