Archive for Downsizer For an ethical approach to consumption
 


       Downsizer Forum Index -> Small Business Questions, Ideas and Advice
Nick

Recording last years loss on self assessment

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

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

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

Glad you sorted it.
RichardW

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

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

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

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

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. Smile
       Downsizer Forum Index -> Small Business Questions, Ideas and Advice
Page 1 of 1
Home Home Home Home Home