Carrying back losses and the definition of trading

[NeverBackToPerm]

Thanks to everyone for the input. I will follow my accountant's advice and not offset the loss.

I've been a bit lazy in the past, taking breaks between contracts and waiting for lucrative and/or interesting ones. I do not think that being selective means I wasn't genuinely trading. However I can't really say that I've been actively searching recently and since I'm not feeling motivated I'm now thinking it's time to close my ltd and retire.

[PerfectStorm]

Agree with your accountant. Unless you are actively seeking work and can evidence that, there is no active trade. Performing necessary administrative functions is not being engaged in a trade.

There may be exceptions to this - for example during the Coronavirus furlough period where a number of owner directors were both looking for work and furloughed, and taking a salary. All legitimately.

[northernladuk]

There may be exceptions to this - for example during the Coronavirus furlough period where a number of owner directors were both looking for work and furloughed, and taking a salary. All legitimately.

Bit irrelevant now but I don't think that is technically right. A director could be furloughed as an employee but could not do any work for the company. They could carry out statutory duties around keeping the LTD's legal responsibilities but looking for work is Sales and an aspect of work and not a statutory duty.

In reality who knows and who would care, but technically looking for work for the LTD wasn't legitimate.

[jamesbrown]

There may be exceptions to this - for example during the Coronavirus furlough period where a number of owner directors were both looking for work and furloughed, and taking a salary. All legitimately.

If they were looking for work, the company was trading. I think you're confusing the status of an employee or director for the purposes of meeting the criteria of some gov't scheme ("furloughed") and the trading state of the company.