Carrying forward a loss

[Fuzquia]

I am trying to carry forward a loss from my first accounting year (07/08).

There is a section for this on the self assessment on-line returns form titled 'Loss brought forward from earlier years set-off against 2008-09 profits:' simple you would think?

However, my 07/08 loss is greater than my profit for my 08/09 returns therefore the on-line form returns an error of:

"The amount entered for 'Loss brought forward from earlier years set-off against this year's profits' cannot exceed the amount entered for 'Net business profit for tax purposes'. Please check."

So how do I carry forward my first year loss if not in this section?

 

[elaine@cheapaccounting]

yes but it is restricted to the amount of the profit. Then you c/f the remaining loss to next year

so loss = profit - tax is nil

simples

tax doesn't have to be taxing said Pinocchio