Argggggghhhhhhhh - losses and multiple businesses and separate clss4NI possibilities all in the same question strewth.
Apologies for being thick pawncob but i am struggling to understand the following calculation - feel free to ignore my post below if i have lost the plot.
This year the results were (a) £8000 and (b) a loss of £3000, so £1800 is being carried back to 2016/17. This will reduce the taxable amount and result in a repayment of tax, but what about the Class 4 position?
If the following correct?
So for ye 5/4/2018 we have no losses b/f
Profit from one trade of £8,000
and loss from second trade of £3,000
how did you calculate the £1,800 being carried backover? - are you saying the 3k loss is split £1,200 current year (net sole trader profit 6800) and £1,800 carried back - note to self can a split like this be done?
Hmmmm i'm not scheduled to leave for the pub till 1.30 pm perhaps i should give up and depart now.
I would have guessed that the class4 loss follows the loss for tax purposes to the extent that those losses are set against "sole trader income" - so there is only a class4 loss to carry forward if the loss has been set against other income or there is a sole trader loss carried forward. Whether that loss must then be used up at the first available point later on and if it is restricted to the same trade are interesting questions i don't know the answer to.