trading loss relief against tax paid under paye
I have just completed a hmrc's online tax return for 2007/08, with income from employment and self employment. Tax payer was employed for first half of the year and paid tax under paye scheme. Became self employed in the second half of the year and made a trading loss.
Having completed the employment and self employement section of the Tax return. i would have thought that the taxpayer would be eligible for a refund of the tax he paid under paye, but the tax computation does not net off the paye tax paid against trading loss of the year.
Am I missing something or would we have to make a separate claim - outside the tax return for a tax repayment/loss relief for the year.
i would appreciate your input.