Losses and NI

Losses and NI

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New client has two self employments (completely separate) in 06/07 & did her own return. One made a profit but one made a loss. Whilst the two were combined for tax, there was no relief for the loss for class 4 NI. This was filing on line using the Revenue's website.

Surely this is wrong? My reference book say "trading losses can only be offset against trading income for NIC purposes", which makes sense to me (i.e. it follows income tax).

Have the Revenue got it wrong?

RR

Replies (3)

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By User deleted
03rd Mar 2008 15:08

Thank you Ronnie
you are right, it is box 3.96. The details are in help sheet IR220.

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By Ronnie Stanley
03rd Mar 2008 12:44

Claim in Box 3.96
I believe a claim should be entered in Box 3.96 of the SE pages for the profit making business.

I doubt the software will do this automatically.

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By spayne
03rd Mar 2008 11:16

Add them together
I always thought that you added the 2 self employments together and the result was the calculation for tax and NIC class 4

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