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Most effective use of self employed losses?

S/Employed client made a loss of £1,380 in 17/18 can it be c/back to offset again emp income?

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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16th Apr 2018 18:46

s64 allows trading losses against total income for current and preceding year.

See HMRC help sheet 227

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16th Apr 2018 18:56

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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to Marion Hayes
17th Apr 2018 08:30

Marion Hayes wrote:

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.

Top answer.

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