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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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!
Yes. Companies House is wonderful, isn't it
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.
Your question pack is out of date. These days, they ask about tax and national insurance.
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.
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.
Yes - well done, Tim, for providing that nugget.
Yes, may I also add my thanks for Tim's unswerving helpfulness and utter professionalism. Well played, sir!
Foxtrot, foxtrot, sierra.
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?
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.
On my profile, it says "Your username is not editable". That suggests Sift are actually facilitating this nonsense!
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.
It would be seen as political bias to filter that out but to let Johnson through.
What, he's posting here now?!