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Where Taxpayers and Advisers Meet

Stand alone loss claims for current year

eb321
Posts:25
Joined:Fri Jun 20, 2014 8:20 pm
Stand alone loss claims for current year

Postby eb321 » Tue Apr 26, 2022 4:29 pm

Hello all

I am considering starting a new self employment, in addition to my employment.

I'm currrently earning £135k through my employment, so I don't have any personal income tax allowance left.

The business idea involves buying a piece of equipment for around £30k. I estimate breaking even in 2.5 years.

If I claim the full cost of the equipment as part of AIA in year 1, I estimate I will have a loss of around £23k through self employment this year, which I understand will be offset against my employment income - meaning that I get some of my annual allowance back, with an associated tax rebate. So I'm thinking that this effectively reduces my start up costs, overall.

If this is correct, do I need to wait until the end of the year to submit a SA to then claim the tax refund. Or can I arrange for the estimated loss to be incorporated into this year's tax code? I've read some conflicting info online and wondered if someone here would be kind enough to clarify please?

Thanks in advance

pawncob
Posts:5089
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Stand alone loss claims for current year

Postby pawncob » Tue Apr 26, 2022 4:45 pm

https://www.gov.uk/government/publications/extended-loss-carry-back-for-businesses/extended-loss-carry-back-for-businesses
You can't make a claim until after the end of the basis period.
With a pinch of salt take what I say, but don't exceed your RDA


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