Sole Trader-Offset carried forward losses from one business to another?

[David Griffiths]

You can set off trading losses against general income of the same or previous tax year, and that includes rental income.

Schedule D and Schedule A are terms that went out of use when self assessment was introduced and the old schedular system of assessments was scrapped.

[elainec100@cheapaccounting]

The rules on losses are on the HMRC web site:

http://www.hmrc.gov.uk/helpsheets/hs227.pdf

May I be as bold to suggest that this is a great place to start reading for an accountant new to Practice. Good luck

[Bungle2000]

Hello all, some really helpful points, many thanks.

Originally Posted by David Griffiths

A trading loss can be relieved in a number of ways
...
- it can be carried back, and set against any income arising in the previous tax year

Thanks David. The point above was of particular interest, so next year (2012/2013) I could take the loss carried forward from Business A from this year (2011/2012), and use it against Business B income from the previous year (being 2011/2012)?

[David Griffiths]

Originally Posted by Bungle2000

Hello all, some really helpful points, many thanks.


Thanks David. The point above was of particular interest, so next year (2012/2013) I could take the loss carried forward from Business A from this year (2011/2012), and use it against Business B income from the previous year (being 2011/2012)?

No .

[faradaykeynes]

Thanks David & Elaine, good to update on important technical bit from experience people in industry. I have not come across any loss making business cases for some time now. I have seen few practitioners linked with tax specialist, how much that cost and do you recommend any perhaps use yourself for advance complicated tax matters?
Regards

[elainec100@cheapaccounting]

Originally Posted by faradaykeynes

Thanks David & Elaine, good to update on important technical bit from experience people in industry. I have not come across any loss making business cases for some time now. I have seen few practitioners linked with tax specialist, how much that cost and do you recommend any perhaps use yourself for advance complicated tax matters?
Regards

Hi

David and I are not in industry but run Accountancy Practices.

Speaking for CheapAccounting.co.uk we handle tax matters ourselves and the one quoted is a "run of the meal" accountancy practice case so we would not use a specialist for that.

We tend to only go to specialists where the case is very complex. So I am afraid that I cannot really help you.

Maybe you could refresh your knowledge through your professional body and / or your study pack notes from your training?

[faradaykeynes]

Thanks Elaine , I know technical difference between industry and practice, when i said experience people in industry I meant accountants in practise and not FDs.