If the COVID-19 restrictions significantly impacted your business, you are able to claim a tax repayment for the accounts that show that there was a loss over the pandemic but a profit in earlier years.

Should the loss exceed the profit made in the previous year, the excess loss can be carried back and set against the profits from the two preceding years.

Claiming Corporate Losses Through The HMRC Online Portal

Carrying back the extended loss only applies to losses that occurred in the accounting periods between the 1st April 2020 and the 31st Match 2022. The amount of losses that can be carried back is capped at £2m per year of loss.

In particular situations, you will not have to wait until the corporation tax return is finalised for the loss period to make a claim. However, claims for the two earlier years exceeding £200,000 must be made in the corporation tax return.

To claim corporate losses, you will need to use the HMRC online portal – our team can help you with this. Ideally, we would submit the finalised and approved company accounts with the loss claim. However, if the final accounts are not available, management accounts for the loss period can be used.

If your company is part of a group, a nominated group company must submit a written loss carry-back allocation statement. This must show which companies in the group are claiming the allowable losses.