Peter Rayney shows how singleton companies can make best use of trading losses caused by the Covid-19 disruption.
Large numbers of owner-managed companies have felt the vicious financial effect of the lockdown and other social restrictions imposed by government. This has resulted in many companies posting substantial losses during 2020.
At the same time, maximising cashflow has been the top priority for the vast majority of businesses. Obtaining speedy tax relief for these tax losses is an important part of their cashflow management.
Trading losses
Singleton companies can relieve their trading losses in a variety of ways. In most cases, the preferred route for a 2020 trading loss would be to offset it against any other profits of the current accounting period, with any remaining loss being carried back against the total profits of the
