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can I offset self employment loss against employment tax paid

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tpee

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Aug 23, 2010
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This is my second trading year and have made a loss and was in employment paying PAYE prior to this. I have been reading online about carrying a loss forward and also that you may be able to take it back and claim against tax paid when employed to claim a refund. Any advise regarding this would be greatly appreciated as this would help a great deal at the moment. Thanks
 
Info you need:

Trade losses can be relieved in a number of ways:
• by reducing your income for the year ended 5 April 2010 and if your
income is nil or less than the loss
• by reducing your capital gains for the year ended 5 April 2010
• by claiming for relief to be calculated by reference to your income for
earlier years or your capital gains for the year ended 5 April 2009
• by claiming for relief to be calculated by reference to profits of the same
trade taxed in earlier years
• by carry forward against future profits of the same trade or income from
the company (where you transfer your trade to a company in exchange for
shares in that company), or post cessation receipts.
 
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elainec100 said:
When were you under paye?
Click to expand...

Hi, thanks for replying.
I was employed up to May 08 when I got made redundant and set up my own business. I claimed some tax back on my 1st return that I had paid in this employment covering April and May as my Self Employed business didn't make as much as my personal allowance.
 
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Were you employed and paying tax in the years 2006-07 up to 2007-08?

A loss in the first four years of a new business can be carried back and set against general income for the three preceding years, earliest first. So if your loss is in 2009-10 you can carry that back to 2006-07
 
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David Griffiths said:
Were you employed and paying tax in the years 2006-07 up to 2007-08?

A loss in the first four years of a new business can be carried back and set against general income for the three preceding years, earliest first. So if your loss is in 2009-10 you can carry that back to 2006-07
Click to expand...

Yes I was employed in 2006/07, so I can claim some tax back for this period based on my 09/10 trading loss?
 
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[Trade losses can be relieved in a number of ways:
• by reducing your income for the year ended 5 April 2010 and if your
income is nil or less than the loss
• by reducing your capital gains for the year ended 5 April 2010
• by claiming for relief to be calculated by reference to your income for
earlier years or your capital gains for the year ended 5 April 2009
• by claiming for relief to be calculated by reference to profits of the same
trade taxed in earlier years
• by carry forward against future profits of the same trade or income from
the company (where you transfer your trade to a company in exchange for
shares in that company), or post cessation receipts.[/quote]

Is the above applicable to a sole trader only or does it apply to a limited company as well.

I retired 2 years ago and receive a company pension. I started a limited company about the time I retired and have made a loss in both the first 2 years - can I offset these losses against the income (company pension) I receive?

I would appreciate any guidance you can give.

Regards
 
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Duckpool said:
[Trade losses can be relieved in a number of ways:
• by reducing your income for the year ended 5 April 2010 and if your
income is nil or less than the loss
• by reducing your capital gains for the year ended 5 April 2010
• by claiming for relief to be calculated by reference to your income for
earlier years or your capital gains for the year ended 5 April 2009
• by claiming for relief to be calculated by reference to profits of the same
trade taxed in earlier years
• by carry forward against future profits of the same trade or income from
the company (where you transfer your trade to a company in exchange for
shares in that company), or post cessation receipts.

Is the above applicable to a sole trader only or does it apply to a limited company as well.

I retired 2 years ago and receive a company pension. I started a limited company about the time I retired and have made a loss in both the first 2 years - can I offset these losses against the income (company pension) I receive?

I would appreciate any guidance you can give.

Regards
Click to expand...

You can't offset the company's loss against your personal income. The company loss will carry forward to be set against future profits of the same trade.


Anna
 
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