How to claim a tax loss re ebay trading

[Hammersia]

I have a pretty simple tax return, rent out one property, I'm in full time employment.

For the last six years I've had a small side hussle which is accounted for on a cash basis, maximum I've paid in additional tax on that in any one year was about £3,000. Basically ebay type trading.

Last tax year I made a 2 grand cash loss on this ebay trading. I've tried entering this on my self assessment form but I must be using the wrong section or something, nothing I enter reduces my self assessment tax (in my case this last tax year the tax I pay should therefore be my property income minus my ebay trading loss).

What section should I be using to record this loss? Cheers

[Countdown]

Hammersia said:

I have a pretty simple tax return, rent out one property, I'm in full time employment.

For the last six years I've had a small side hussle which is accounted for on a cash basis, maximum I've paid in additional tax on that in any one year was about £3,000. Basically ebay type trading.

Last tax year I made a 2 grand cash loss on this ebay trading. I've tried entering this on my self assessment form but I must be using the wrong section or something, nothing I enter reduces my self assessment tax (in my case this last tax year the tax I pay should therefore be my property income minus my ebay trading loss).

What section should I be using to record this loss? Cheers

AIUI you can only offset trading losses against other trading profits, you cannot offset trading losses against Income from employment or income from land and property.

In this situation you will need to carry your losses forward and offset them against future trading profits.

[uknick]

Countdown said:

Hammersia said:

I have a pretty simple tax return, rent out one property, I'm in full time employment.

For the last six years I've had a small side hussle which is accounted for on a cash basis, maximum I've paid in additional tax on that in any one year was about £3,000. Basically ebay type trading.

Last tax year I made a 2 grand cash loss on this ebay trading. I've tried entering this on my self assessment form but I must be using the wrong section or something, nothing I enter reduces my self assessment tax (in my case this last tax year the tax I pay should therefore be my property income minus my ebay trading loss).

What section should I be using to record this loss? Cheers

AIUI you can only offset trading losses against other trading profits, you cannot offset trading losses against Income from employment or income from land and property.

In this situation you will need to carry your losses forward and offset them against future trading profits.

What Countdown said.

[Hammersia]

uknick said:

Countdown said:

Hammersia said:

I have a pretty simple tax return, rent out one property, I'm in full time employment.

For the last six years I've had a small side hussle which is accounted for on a cash basis, maximum I've paid in additional tax on that in any one year was about £3,000. Basically ebay type trading.

Last tax year I made a 2 grand cash loss on this ebay trading. I've tried entering this on my self assessment form but I must be using the wrong section or something, nothing I enter reduces my self assessment tax (in my case this last tax year the tax I pay should therefore be my property income minus my ebay trading loss).

What section should I be using to record this loss? Cheers

AIUI you can only offset trading losses against other trading profits, you cannot offset trading losses against Income from employment or income from land and property.

In this situation you will need to carry your losses forward and offset them against future trading profits.

What Countdown said.

Thanks both - should I still record them as losses in a specific bit of the form so that the IR knows I'm going to offset next year?

[Eric Mc]

The general rules for claiming loss relief for sole traders is -

You can utilise trading losses in a a number of ways -

Year of loss
Against total income from all sources (ITA 2007, s64, BIM 85015)

May be extended to include set off against capital gains once all taxable income has been extinguished (TCGA 1992, s261B, BIM85025)

Earlier years
Against total income from all sources in the preceding tax year
(ITA 2007, s64, BIM85015)

May be extended to include set off against capital gains once all taxable income has been extinguished (TCGA 1992, s261B, BIM85025)

Subsequent years
Against the first available profits of the same trade (ITA 2007, s83, BIM85060)

[Alpinestars]

You can claim what’s colloquially known as sideways relief. Offset trading losses against other income of the current and prior year.

https://www.legislation.gov.uk/ukpga/2007/3/sectio...

[Hammersia]

Alpinestars said:

You can claim what’s colloquially known as sideways relief. Offset trading losses against other income of the current and prior year.

https://www.legislation.gov.uk/ukpga/2007/3/sectio...

Thanks - so where do I enter this loss on my self assessment form? Which section please?

[Eric Mc]

Page SES2 (Self Employment pages) - Box 33 -

if you want to offset the loss made in tax year 2022/23 against "Other Income" in tax year 2022/23.

[Hammersia]

Eric Mc said:

Page SES2 (Self Employment pages) - Box 33 -

if you want to offset the loss made in tax year 2022/23 against "Other Income" in tax year 2022/23.

Cheers will have a look later