Bring forward tax losses from 2013-14

Self employment losses brought forward

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My wife is self employed and also in employment.

Loss made 2014-15 in self employment, and employment wages were below personal allowance so no tax due 2014-15.

2015-16: a small loss in self employment, and tax deducted from employment.

I was hoping the self employment loss from 2014-15 could be brought forward and be deducted from the tax deducted from employment for 2015-16.  Trying to input 2014-15 loss into online box: "Loss brought forward from earlier years set-off against 2015-16 profits:" but assuming as there is a loss , it doesn't allow the loss to be applied.  Question is , can the 14-15 self employment loss be brought forward and set off against tax deducted from employment in 15-16?  If so, where can this be done in self assessment online?

Thanks

Replies (4)

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By johngroganjga
18th Sep 2016 06:06

Firstly trading losses are set off against employment INCOME, not against the tax paid on the employment income.

The 15/16 losses can be set off against the 15/16 employment income, but the 14/15 losses can only be set off against any future trading profits.

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By Chipette
18th Sep 2016 08:56

When did she start trading as self employed?
Early years trade loss relief may be available.

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RLI
By lionofludesch
18th Sep 2016 09:41

As John says, you can use the 2015/16 loss "sideways" but the earlier losses are only available against future profits of the SAME TRADE.

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By AlgernonB
19th Sep 2016 10:50

Was your client in employment in 2013/14, and earning enough to pay sufficient tax to absorb the 2014/15 loss relief? Carry the 2014/15 losses back one year; the time limit is 31/1/17, so there's time to amend the 2015 Tax Return form to claim the loss. This would also work if she had, say, taxed interest to absorb the loss, as the loss is going against general income, but not dividends as you can't have the tax credits back.

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