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BRETT78


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PTAX question.... Newly self employed, revenue 7000, expenses 3000. Can the 7000 be wiped out by personal allowance and the 3000 expenses be carried forward as a loss?

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abacus12345


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You'd have £4000 as total income

Less PA (11000)

Taxable income Nil

Remaining PA will be lost.

(Assuming there is no further income)

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Onion4Sage


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You can also transfer up to 10% of your PA to your spouse (if you have one).

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Ian

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Cheshire


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BRETT78 wrote:

PTAX question.... Newly self employed, revenue 7000, expenses 3000. Can the 7000 be wiped out by personal allowance and the 3000 expenses be carried forward as a loss?

 No.

 Wouldnt that go against Accounting standards?  



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 Joanne 

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Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Leger


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Indeed Joanne, creative accounting at it's best biggrinbiggrin  

On the tax return you would enter £7000 income and £3000 expenses, resulting in a £4000 profit.  No Tax or NI to pay and the remainder of the personal allowance is "lost" (see Ian's post for one exemption)

(assuming there is no income from elsewhere as Johnny points out)



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