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Recording last years loss on self assessment

 
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Nick



Joined: 02 Nov 2004
Posts: 33601
Location: Hereford
PostPosted: Sat Jan 23, 16 2:15 pm    Post subject: Recording last years loss on self assessment  Reply with quote    

Just working out how much I owe HMRC.
I made a loss last year on a rented property, which I can carry over to this year's tax bill. However, if I put it on the form as an allowable expense, which is what I *think* I should be doing, it just adds to the loss to be carried over to next year, and I still get a tax bill.

Doing this is going to end up with me paying tax every year and a growing loss, which carries over every year. So, there must be a way to reduce my tax bill for 2014-15 by the amount I lost in 2013-14.

Any idea how I do this, please?

ETA: I think I've figured it out. Can't be done.

dpack



Joined: 02 Jul 2005
Posts: 32660
Location: yes
PostPosted: Sun Jan 24, 16 12:57 am    Post subject: Reply with quote    

a good accountant should generate their fees from part of the savings they create.

many will give basic advice on a problem in a initial short meeting in the hope of gaining a long term client.

Nick



Joined: 02 Nov 2004
Posts: 33601
Location: Hereford
PostPosted: Sun Jan 24, 16 1:01 am    Post subject: Reply with quote    

dpack wrote:
a good accountant should generate their fees from part of the savings they create.

many will give basic advice on a problem in a initial short meeting in the hope of gaining a long term client.


In simple cases like mine, it's wasted money. If I'd read it properly, the website was clear enough. I don't need to find loopholes, and am happy to pay the required amount.

There's an error on my paye, but that aside, we pretty much end up square.

Mistress Rose



Joined: 21 Jul 2011
Posts: 8505

PostPosted: Sun Jan 24, 16 9:18 am    Post subject: Reply with quote    

Glad you sorted it.

RichardW



Joined: 24 Aug 2006
Posts: 8414
Location: Llyn Peninsular North Wales
PostPosted: Sun Jan 24, 16 9:37 am    Post subject: Reply with quote    

I had to do this once a long while ago.

I am sure there was a box for losses carried forward from previous years.

Nick



Joined: 02 Nov 2004
Posts: 33601
Location: Hereford
PostPosted: Sun Jan 24, 16 12:07 pm    Post subject: Reply with quote    

RichardW wrote:
I had to do this once a long while ago.

I am sure there was a box for losses carried forward from previous years.


There is, but losses in a rental business can't be used to offset tax due from other sources. As I make a loss each year, pretty much, it'll just keep carrying over.

dpack



Joined: 02 Jul 2005
Posts: 32660
Location: yes
PostPosted: Sun Jan 24, 16 1:22 pm    Post subject: Reply with quote    

if it carries over will it get taken off any taxes due if you decided to sell the property?

that is the sort of thing accountants are useful for even with a fairly low turnover pa.

plus they know the current situation regarding self employed,sole trader,limited company status, trusts or whatever would be best in the circumstances.

i have been doing some follow the money stuff to establish links between people and organisations and a lot of property stuff seems to be limited company based even if it does not have a big turnover or profit.

it was just a thought if you happened to know a tame one for some advice.

RichardW



Joined: 24 Aug 2006
Posts: 8414
Location: Llyn Peninsular North Wales
PostPosted: Sun Jan 24, 16 2:19 pm    Post subject: Reply with quote    

Nick wrote:
RichardW wrote:
I had to do this once a long while ago.

I am sure there was a box for losses carried forward from previous years.


There is, but losses in a rental business can't be used to offset tax due from other sources. As I make a loss each year, pretty much, it'll just keep carrying over.


Ah dint know that rental was not allowed to be treated the same as any other business. Seems a bit odd.

I guess as dpack says, keep rolling it over till either you do make a profit or you sell & it can lower your capital gains TAX (I think). I would also guess that you can only keep a rolling say 6 years worth in hand as there will be a time limit.

Nick



Joined: 02 Nov 2004
Posts: 33601
Location: Hereford
PostPosted: Sun Jan 24, 16 2:53 pm    Post subject: Reply with quote    

dpack wrote:
if it carries over will it get taken off any taxes due if you decided to sell the property?

that is the sort of thing accountants are useful for even with a fairly low turnover pa.

plus they know the current situation regarding self employed,sole trader,limited company status, trusts or whatever would be best in the circumstances.

i have been doing some follow the money stuff to establish links between people and organisations and a lot of property stuff seems to be limited company based even if it does not have a big turnover or profit.

it was just a thought if you happened to know a tame one for some advice.


Yeah, you and Richard are broadly right, just for this, it's simple enough. Thanks, tho. :)

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