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Where Taxpayers and Advisers Meet

Part Time Income/Loss

tukshad.engineer@mor
Posts:2
Joined:Wed Aug 06, 2008 3:09 pm

Postby tukshad.engineer@mor » Mon Mar 29, 2004 6:45 am

Hi,

I am a part sole trader and part employed. My sole trader income is one selling handicrafts but having only recently set-up (under a year ago) I will experience a loss. Am I allowed to offset this loss against the income on my employed salary?

Further am I allowed to include related travel costs as expenses for the business (flight tickets & accomodation)?

Many thanks.

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Mon Mar 29, 2004 8:10 am

You will be able to offset all expenses incurred wholly and necessarily in connection with your trade. This would include travelling, accommodation and subsistence incurred on business.

If you are able to establish that you are undertaking the trade with the intention of making a profit, you will be able to offet any loss as follows:

1. In respect of losses arising in the first four years of trading, by carring back against income in the three previous tax years (earliest year first), or

2. Against other income arising in the previous tax year, or

3. Against other income arising in the same tax year, or

4. Against capital gains arising in the same or previous tax year, or

5. Against future profits from the same trade, or

6. In respect of losses arising in the last period of trading, by carring back against profits arising in the three previous tax years.

The loss claim should be included on your annual tax return.

If you require any further assistance please do not hesitate to contact us, and we will be happy to act on your behalf.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk


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