If an individual has 2 separate self employed businesses, one showing a profit of say £15k and the other a loss of say £6k, then the loss can be offset against the profit for tax purposes, but can it be offset for Class 4 NIC purposes ?
On the above scenario no tax would be payable as covered by PA, but is NI payable on business 1 on the £15k less the usual NI exemption, or can the £6k loss be offset and NI is then payable on £9k less the usual exemption ?
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You can enter an adjustment on the return for NIC4 losses (box 102). See HMRC helpsheet 220.
Yes. You calculate Class 4 NIC on the aggregate position of the two self-employments.
Any loss that is left over can be carried forward for Class 4 NIC purposes. HMRC consider that the loss can only be carried forward against profits of the same trade, but that is not what the legislation says.