Going self employed - possibly in a hurry
Discussion
Upatdawn said:
I knew a courier who drafted in drivers as needed and paid by the day, getting them to sign for the pay with the disclaimer (I realised i am self employed and liable to pay my own stamp and tax)
and then HMRC came knocking......he had to sell the business to pay the taxman
all he had to do was ask each driver for an invoice.........
Often its the NI regulations that get them rather than the tax regulations.and then HMRC came knocking......he had to sell the business to pay the taxman
all he had to do was ask each driver for an invoice.........
CaptainSlow said:
In your example, and in reality, it isn't.
not sure what you mean, CT (Corporation tax) is profit linkedall those banks setting aside billions for mis-sold insurance are saving millions
or as HMRC put it...
If your company or organisation is liable for Corporation Tax and makes a loss from trading, the sale or disposal of a capital asset, or on property income, then you may be able to claim relief from Corporation Tax.
You get tax relief by offsetting the loss against your other gains or profits of your business in the same accounting period. You can also choose to carry the loss back or it will be carried forward to another accounting period.
Edited by Upatdawn on Friday 3rd May 12:52
Of course it can be a refund. It depends on what you do with the loss.
The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
Eric Mc said:
Of course it can be a refund. It depends on what you do with the loss.
The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
Forget CT for now, its purely for Ltd companies, the OP is hardly likely to incorporate till his sales figure hits £100K PA The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
Trade losses can be relieved in a number of ways:
• by reducing your income for the year ended 5 April 2013 and if your
income is nil or less than the loss
• by reducing your capital gains for the year ended 5 April 2013
• 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 2012
• by claiming for relief to be calculated by reference to profit 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
• by reducing your income for the year ended 5 April 2013 and if your
income is nil or less than the loss
• by reducing your capital gains for the year ended 5 April 2013
• 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 2012
• by claiming for relief to be calculated by reference to profit 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
Upatdawn said:
Eric Mc said:
Of course it can be a refund. It depends on what you do with the loss.
The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
Forget CT for now, its purely for Ltd companies, the OP is hardly likely to incorporate till his sales figure hits £100K PA The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
Eric Mc said:
Read my last sentence.
I did, mostly about CT - why I dont know, its hardly releventEric Mc said:
Of course it can be a refund. It depends on what you do with the loss.
The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
and I did post that losses COULD be offset against previous profit years but good luck getting a refund off HMRC!The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
Upatdawn said:
Eric Mc said:
Read my last sentence.
I did, mostly about CT - why I dont know, its hardly releventEric Mc said:
Of course it can be a refund. It depends on what you do with the loss.
The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
and I did post that losses COULD be offset against previous profit years but good luck getting a refund off HMRC!The classic example of where a refund can be obtained is if the loss is carried back to a previous year where there had been a profit and Corporation Tax had been paid. If the loss is carried back in this way, some if not all of the previous year's CT bill will be refunded to the company.
And the same principle applies to trading losses incurred by a sole trader/self employed individual.
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