Self Assessment - Made a Loss, Owe Tax ?
Discussion
Assuming you do have an actual trading loss, you could also do a s72 early year loss relief claim as a sole trader. This is where a trading loss is incurred within the first four years of trading - you can carry back against total income from the last 3 years on a FIFO basis (earliest first). So a 17/18 trading loss could be carried back to 14/15 total income. Total income including employment income, property income, savings etc (subject to a restriction though).
Could be useful if you’re not profitable for the first 4 years of trading
Could be useful if you’re not profitable for the first 4 years of trading
Edited by Delboylee on Tuesday 14th November 12:38
Assuming you do have an actual trading loss, you could also do a s72 early year loss relief claim as a sole trader. This is where a trading loss is incurred within the first four years of trading - you can carry back against total income from the last 3 years on a FIFO basis (earliest first). So a 16/17 trading loss could be carried back to 13/14 total income. Total income including employment income, property income, savings etc (subject to a restriction though).
Could be useful if you’re not profitable for the first 4 years of trading
Could be useful if you’re not profitable for the first 4 years of trading
Gassing Station | Finance | Top of Page | What's New | My Stuff