Tax Forum :: Free Tax Advice

Greetings all,

I have a bit of a predicament that I can’t seem to find any advice on and am hoping someone can shed some light as to my options.

I worked for a company as a PAYE employee (not a director or shareholder) that went bust owing me 4 months’ salary totalling over £10,000, a loan I put into the company of £2,500 as well as £3000 of expenses.

I can claim a small amount of the salary back of the government insolvency fund (less than half the outstanding salary) and I know there are no assets in the company so nothing will come from the liquidation, but I have been told that it would be possible to declare the remainder as a “tax loss” and reclaim my losses that way over time, Is this the case and is there anything that can be done here and if so where do I even start?

The expenses can be claimed in your tax return, provided that they were incurred in the performance of your duties. You will not get the expenses reimbursed, but you will get tax relief on the amounts you incurred.

If you have evidence of the loan. you may be able to claim it as a capital loss. This is of little value until you make a capital gain against which you can set the loss.