My client was employed in 17/18 and became self employed in Oct17, her employment income was £8k. Her self employment has made a loss of £2k. The tax paid on employment income will be fully refunded. but can the loss of £2k be offset against prior year employment?
Any advice would be appreciated..
Thanks
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s64 allows trading losses against total income for current and preceding year.
See HMRC help sheet 227
Also you can claim a loss in early years of trade back 3 years against total income. Pick the option that gets the best tax relief.
Don't forget that there is a separate loss claim available for Class 4 NIC so it will carry forward to set against future profits if you claim it against employment income for IT purposes.
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