Expenses information
If your total expenses are higher than your earnings, you will be making a loss which can be taken off a future profit.
For example
Sarah makes £5,000 in the tax year 2021-22 but has expenses of £7,000. This creates a £2,000 loss.
However, Sarah makes £10,000 in the tax year 2022-23 and has expenses of £5,000. This is a £5,000 profit. This profit will be lowered by £2,000 due to the expenses from the previous year, which will create a taxable profit of £3,000.