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3 businesses under a sole trader

2 businesses made profits while the other one made a loss, how do i calculate the income tax?

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Mr A owns 3 businesses under a sole trader (self employed). 2 businesses made profits and the other one made a loss. For example,

Business 1: made a profit of £50,000

Business 2: made a profit of £10,000

Business 3: made a loss of £70,000

Does Mr A have to pay any income tax?

Please give reasons for your answer and back it up with HMRC rules. Thank you.

Replies (35)

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By Accountant A
23rd Jun 2019 16:07

I suggest you speak to a local firm of accountants. For example https://xebraaccounting.co.uk/

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Replying to Accountant A:
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By MissAccounting
24th Jun 2019 09:21

Accountant A wrote:

I suggest you speak to a local firm of accountants. For example https://xebraaccounting.co.uk/

Took me a while but now I know youre not just suggesting some random firm!

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Replying to MissAccounting:
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By paul.benny
24th Jun 2019 09:42

Yes. Companies House is wonderful, isn't it

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Replying to paul.benny:
RLI
By lionofludesch
24th Jun 2019 09:51

Can't spell zebra though.

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Replying to lionofludesch:
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By legerman
24th Jun 2019 12:14

lionofludesch wrote:

Can't spell zebra though.

Reminds me of the time I was spelling out something phonetically on the phone. It all went fine until I said z for xylophone.

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By Tax Dragon
23rd Jun 2019 16:17

Your question pack is out of date. These days, they ask about tax and national insurance.

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By Tim Vane
23rd Jun 2019 16:19

It’s a trick question. There are no HMRC rules. There is the law, and there is HMRC guidance. The latter is not always correct.

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Replying to Tim Vane:
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By Dan2019
24th Jun 2019 16:25

Many thanks for your honest advise, i really appreciate it.

I have noticed that only few people in this forum are professionals you are obviously one of them. Others appear to be jobless and they enjoy gossips, instead of answering the posted question they are busy digging out details of the person that asked the question. It is for this reason I will be leaving the forum. I cannot associate myself with this calibre of people, of course with the exception of some.

Tim Vane, once again thank you for been professional.

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Replying to Dan2019:
RLI
By lionofludesch
24th Jun 2019 16:33

Dan2019 wrote:

Tim Vane, once again thank you for been professional.

Yes - well done, Tim, for providing that nugget.

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Replying to Tim Vane:
By Red Leader
24th Jun 2019 17:36

Yes, may I also add my thanks for Tim's unswerving helpfulness and utter professionalism. Well played, sir!

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RLI
By lionofludesch
23rd Jun 2019 18:00

Foxtrot, foxtrot, sierra.

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By Bob Loblaw
24th Jun 2019 09:16

I would suggest that Mr A (who definitely isn't you, because, surely, as the director of at least 3 active limited companies you have an accountant advising you) seeks professional advice from an accountant who can sit down and have a face-to-face conversation with him. As mentioned above, these figures are far too large to rely on the... kindness... of those who frequent this site.

Thanks (1)
Replying to Bob Loblaw:
Quack
By Constantly Confused
24th Jun 2019 15:10

Bob Loblaw wrote:

I would suggest that Mr A (who definitely isn't you, because, surely, as the director of at least 3 active limited companies you have an accountant advising you) seeks professional advice from an accountant who can sit down and have a face-to-face conversation with him. As mentioned above, these figures are far too large to rely on the... kindness... of those who frequent this site.

What am I missing? How do you know he is a director of any company?

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Replying to Constantly Confused:
By Duggimon
24th Jun 2019 15:21

The OP changed their profile name and removed the name of their business from it after the responses given here.

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Replying to Duggimon:
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By atleastisoundknowledgable...
24th Jun 2019 18:11

Duggimon wrote:

The OP changed their profile name and removed the name of their business from it after the responses given here.

What I think CC was getting at us that in the original Q, the OP mentioned 3 sole-trade businesses. He may or may not also be a director of 3 additional companies, but we don’t know that.

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Replying to Duggimon:
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By Accountant A
24th Jun 2019 21:00

Duggimon wrote:

The OP changed their profile name ...

On my profile, it says "Your username is not editable". That suggests Sift are actually facilitating this nonsense!

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By Vile Nortin Naipaan
24th Jun 2019 16:30

I recently discovered that kunt doesn't get caught by the swear filter. Not usre why I mentioned that, it was just something that occurred to me while I was in the thread.

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Replying to Vile Nortin Naipaan:
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By Tax Dragon
24th Jun 2019 16:38

It would be seen as political bias to filter that out but to let Johnson through.

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Replying to Tax Dragon:
By Red Leader
24th Jun 2019 17:37

What, he's posting here now?!

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