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Where Taxpayers and Advisers Meet

Can I offset personal losses against a limited company

wires
Posts: 2
Joined: Sat Mar 05, 2011 10:57 pm

Can I offset personal losses against a limited company

Postby wires » Fri Feb 10, 2017 12:19 pm

Hi,
I have worked for 11 years as a teacher paying PAYE and left teaching in 2015. At the same time I was running a small unincorporated sole trader business and doing a self assessment return. Last year a formed a small Ltd company and have ploughed most of my money into it to get it off the ground. I am still registered as self employed and I am also required to do a company tax return as well as my self assessment form.

My question is this, I have read that if I am non incorporated I can write any losses off against the previous 3 years' tax paid. Is there any way in which I can write off against my tax previously paid the investment I have made into my Ltd company this year?

Many thanks

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Can I offset personal losses against a limited company

Postby AmanSood » Fri Feb 10, 2017 2:39 pm

unfortunately not. You can however carry forward your losses and offset against any profits arising in future accounting periods. Good luck!
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

AnthonyR
Posts: 302
Joined: Wed Feb 08, 2017 2:33 pm

Re: Can I offset personal losses against a limited company

Postby AnthonyR » Mon Feb 13, 2017 11:51 am

As Aman said, unfortunately as your company is a separate legal person it's losses are not transferable to you.

There is relief for early years losses for self employment, which can be off set against the previous 3 years income, but this doesn't apply in your circumstances (assuming your sole trade didn't make losses).
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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