16th Apr 2018 18:20

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

Replies

Please login or register to join the discussion.

By clark.hall

16th Apr 2018 18:46

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

See HMRC help sheet 227

Thanks (0)

By Marion Hayes

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.

Thanks (2)

By lionofludesch

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.

Most effective use of self employed losses?

Latest Any Answers

BID price

Dividends on non-voting ordinary shares

Finance Lease

Replies

Please login or register to join the discussion.

Please login or register to join the discussion.

Accounting Excellence