My café made a loss this year — can I carry it back against last year's profits to reclaim corporation tax?

Yes, Oliver, you can do exactly that, and it is a valuable bit of relief in a tough year. A limited company can carry back a trading loss against the total profits of the previous 12 months, which can generate a corporation tax repayment from last year's bill. The loss must arise in the same trade, so losses from your cafe business can only be set against the same company's profits, and the claim is made through the CT600 tax return for the loss-making year. Watch the timing: the claim must be made within two years of the end of the loss-making accounting period, so diarize it and do not leave it to the last minute. The alternative is to carry the loss forward against future profits of the same trade, which suits businesses expecting a rebound rather than needing cash now. Because a carry-back gives you an immediate cash repayment, it is often the better route after one bad year, but do talk it through with your accountant so the CT600 is filed correctly.