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Where Taxpayers and Advisers Meet
Tax Insider Tip: Losses And Tax Credits
16/09/2016, by Tax Insider, Tax Tips - General Tax
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If you are self-employed and usually make large profits, but incur a loss for one year, then you may be eligible to claim working tax credits or universal credit for that year.

It is worth submitting a protective claim during any year for which you are uncertain of the level of your income as you can only backdate claims for one month from the date of claim.

John is married to Mary, who does not work. They have one child age 10.

John usually makes £100,000 per annum as a self-employed consultant.

However, he has just lost his major customer and as a result is likely to make a loss this year, and so submits a claim to working tax credits.

It turns out he does make a loss, and is eligible to receive tax

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The above article is taken from 'Tax Insider,' TaxationWeb's own publication specifically for taxpayers and their advisors. 'Tax Insider' is a monthly magazine containing numerous tax tips, articles, questions and answers from leading tax experts, aimed at helping taxpayers to save tax and reduce their liabilities.

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