Client of mine set up a Ltd Company a year or so ago. During that time he worked exclusively on a golfing website business that as at today has incurred approx £20k of expenses but no income.
In year 2 he has now taken up work as an IT contractor working through the same Ltd Company, with the golf business still operating in the background with the initention of this also bringing in income.
So, for year 1, I am proposing a set of dormant accounts (as no income) but am concerned as to what happens at end of year 2 - can we bring in the £20k plus of golf business expenses and offset against the IT income? Naturally this will lead to a large reduction in profits and hence CT.
Any advice is appreciated.