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Post Info TOPIC: Loss on Self Employment
lor


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Loss on Self Employment
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Hi all,

 

I have a client who has been trading as self employed for about 10 years now, but he has made a loss in the last year of trading 2012-2013.

 

Is there a way that he will be able to offset this against PAYE in his employment?.

 

He has said that he wishes to no longer be self employed and wishes to go back to employment for the foreseeable future, the loss is around £1500.00. Is it possible to offset this and how would they go about this?.

 

Many Thanks

 

Lor



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StuartAnder


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Hi Lor,

see this on hmrc
Availability and use of trade losses
Where an individual makes a loss in a trade, or incurs a loss as a partner in a partnership trade, the tax rules allow the losses to be set against general income and, if applicable chargeable gains in the same or the previous year. Care should be taken to ensure that losses are only relieved once.
Where a claim is made to have the losses set against general income or chargeable gains of a particular tax year they have to be set as far as possible against that income or chargeable gains. In other words it is an all or nothing claim and this may result in personal allowances or the annual exemption not being utilised.

heres the link www.hmrc.gov.uk/agents/toolkits/income-tax-losses.pdf

Hope it helps

Thanks
stuart

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Sharon Eyre


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It can be used to reduce paye on self assessment -this may generate a refund

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Regards

Sharon
lor


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I forgot to mention that it is a Loss of £1500.00 on the self employed business
and a capital gains loss of £5200.00
Can both be set off against paye still - as the self employed business has ceased trading?.

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lor


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www.smallbusiness.co.uk/financing-a-business/accounts-and-tax/1274636/offsetting-losses-against-paye.thtml this answer the self employment loss part, need to research the capital gains loss.

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lor


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www.cheaperaccountant.co.uk/blog/can-a-trading-loss-result-in-a-repayment-of-paye-tax- - reading this, I read the self employment loss can be offset against capital gains tax, but cannot find any info with regards to offsetting capital gains loss against paye or self employment income, my belief it can, but I can't find any info on this!.

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StuartAnder


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http://www.hmrc.gov.uk/cgt/intro/losses.htm Hi lor There is a bit on this link have a read. Scoot down to deducting losses from your income

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lor


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thank you Stuart.

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