I have losses from a previous year. How do I apply them to my current return?

Losses incurred in previous years can be carried forward and applied to offset profits in later accounting periods. For example, if your business had a £20,000 loss in the previous year and made a £70,000 profit in the current year, you can use that £20,000 loss to reduce your taxable profit. After subtracting the carried-forward loss, the taxable profit becomes £50,000.

In Zoho Books, you can enter these carried-forward trading losses when generating your Corporation Tax return.

Here’s how:

Go to Filing & Compliance on the left sidebar and select Corporation Tax.
Select the return for which you want to enter the trading losses.
Under Forms, navigate to the Computation tab.
In the Computation form, scroll to the Trading Losses section.
Enter the loss amount in the Brought Forward Trading Losses field.

Zoho Books will automatically apply the carried-forward loss to offset the current period’s profits and update the Net Profit After Losses accordingly.

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