I have a client that has made quite a large loss for her first year of business, this was due to buying a log cabin which set her back about 5K. Is this large amount feasible to carry forward as a business net loss? It would be fantastic if she could offset some of this loss in future year's profit's. The only issue I am coming up against is because the cabin is over £1,000 it shouldn't be an allowable expense. I suppose I am asking if there is anyway around this?
The log cabin is definately not expenses! And if that has been put through as an expense I would go through other start up costs and check whether they are assets. Where did you get the "over £1000" from? You can get assets under 1000 which would also not be put through as expenses.
Yes agree with Matt, not much you can claim here, I'm a bit rusty on capital allowances for structures but it's nothing or very little. I think you can get some WDA for integral features. On another note it is totally reasonable for a legitimate loss of any figure to be carried forward and offset against future profits.
Actually, this thread is actually a continuation of that one.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
