Offsetting profits/losses - tax

[mon the fish]

Hope someone can help here, tax is a bit of a minefield.

I'm a self-employed postmaster, and at the end of March will be getting a lump sum payment from Post Office Ltd to terminate my contract (long story - government cuts etc etc). This lump sum (a redundancy payment in a way) will be low six figures, and therefore push me well into the 40% tax bracket.

In the next financial year, I will be starting a new business in the post office building, using the proceeds. A large proportion of the lump sum will be spent on doing up the office etc, to the extent that I fully expect to make a loss in 2017/18 due to the startup costs.

Can I do anything to offset this later expenditure, to reduce my tax liability for 2016/17? I'd like to avoid paying 40% tax if possible - and if I do, can I get it back due to making a loss the following year?

[mon the fish]

Thanks for the replies guys, much appreciated.

To answer most of the questions - I'm 35 and yes, putting some of the money into my pension would be tax efficient. But I'm starting a bookkeeping business (still training), and so my plan is to have the money to renovate the shop (from Post Office into bookkeeping office), plus 18 months living costs set aside so I'm not desperate for money straight away. I'm erring on the side of keeping more aside than I think I'd need, which means not a lot to go into the pension; not enough to offset the tax anyway.

The NFSP don't help a lot when it comes to this - as tax isn't their forte, and it's after leaving the network where my issues start. My office is very small, with no other business attached (small stationery section apart). So me (currently) as a Postmaster in the building will become me as bookkeeper in the same building, once stripped out of the counter etc etc. So it is a new business, not a continuation of the old one - just in the same building. I won't be able to trade until I spend the money on the premises.

The reason I'm choosing to become a bookkeeper is that my bookkeeper 2 doors down is retiring, and he's still pretty busy. So the work is out there, and the premises I have are mine so I might as well use them for something (they are linked to my house).

I was thinking I would need to speak to an accountant, thought I'd try the PH fountain of knowledge first though!

[mon the fish]

Thanks for the replies guys, much appreciated.

To answer most of the questions - I'm 35 and yes, putting some of the money into my pension would be tax efficient. But I'm starting a bookkeeping business (still training), and so my plan is to have the money to renovate the shop (from Post Office into bookkeeping office), plus 18 months living costs set aside so I'm not desperate for money straight away. I'm erring on the side of keeping more aside than I think I'd need, which means not a lot to go into the pension; not enough to offset the tax anyway.

The NFSP don't help a lot when it comes to this - as tax isn't their forte, and it's after leaving the network where my issues start. My office is very small, with no other business attached (small stationery section apart). So me (currently) as a Postmaster in the building will become me as bookkeeper in the same building, once stripped out of the counter etc etc. So it is a new business, not a continuation of the old one - just in the same building. I won't be able to trade until I spend the money on the premises.

The reason I'm choosing to become a bookkeeper is that my bookkeeper 2 doors down is retiring, and he's still pretty busy. So the work is out there, and the premises I have are mine so I might as well use them for something (they are linked to my house).

I was thinking I would need to speak to an accountant, thought I'd try the PH fountain of knowledge first though!

[mon the fish]

Thanks for the replies guys, much appreciated.

To answer most of the questions - I'm 35 and yes, putting some of the money into my pension would be tax efficient. But I'm starting a bookkeeping business (still training), and so my plan is to have the money to renovate the shop (from Post Office into bookkeeping office), plus 18 months living costs set aside so I'm not desperate for money straight away. I'm erring on the side of keeping more aside than I think I'd need, which means not a lot to go into the pension; not enough to offset the tax anyway.

The NFSP don't help a lot when it comes to this - as tax isn't their forte, and it's after leaving the network where my issues start. My office is very small, with no other business attached (small stationery section apart). So me (currently) as a Postmaster in the building will become me as bookkeeper in the same building, once stripped out of the counter etc etc. So it is a new business, not a continuation of the old one - just in the same building. I won't be able to trade until I spend the money on the premises.

The reason I'm choosing to become a bookkeeper is that my bookkeeper 2 doors down is retiring, and he's still pretty busy. So the work is out there, and the premises I have are mine so I might as well use them for something (they are linked to my house).

I was thinking I would need to speak to an accountant, thought I'd try the PH fountain of knowledge first though!