How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3384
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

, i became self employed 17/03/14 and so have to fill in

Customer Question

, i became self employed 17/03/14 and so have to fill in a self employed tax return ( up until 5/04/14 by Janurary. Previously i was employed and had two sets of employment in the same tax year 2013-14 earning total of £19775 and paying through PAYE £2163 in tax. on setting up i bought a van and other set up things however received no income as self employed in that year, so as self employed made a net loss of £6392.00. does this loss come of next years tax bill or should i get a cheque - as i'm new to this i don't quite understand how it works ( Filled in self assesment tax return and it says i owe them £98.00 ). any help would be greatfully received. Jonathan.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
, I'm Keith and happy to help you with your question.
The Gov UK web site gives the following guidance:
'Certain trade losses may be offset against general income or chargeable gains in the same year. It may also be possible to carry trade losses back to earlier years or forward to subsequent years.'
So you could offset losses on self employment against your employed income. Alternatively you could carry the losses forward against future self employment income in subsequent tax years.
I trust you have claimed 100% of your van's cost through the medium of capital allowances. you could not do this with a car so easily, but you can with a van. You would receive a 100% allowance .
It sounds to me as though you may not have completed the self assessment tax return quite correctly. Perhaps you should consider using a local, trusted professional to assist you. The cost would not be onerous and you could learn from him.
I do hope I have been able to shed some light on your position.
Customer: replied 2 years ago.

Thanks , however it's all still a bit complicated. As return has to filled in by end of jan, i might be pushing to accountant. However on my tax return it says box 32 net business loss £6392.00. Boxes 33 is loss from this tax year set off against other income -14, (nothing it that box ), box 34 is loss to be carried back to previous years ( Nothing in that box ) and box 35 is total loss to carry forward after all other set-offs (£6392.00) in this box, is this correct or should i put the 6392 in box 33 ?

Expert:  bigduckontax replied 2 years ago.

Accountants and their staffs are used to being swamped as tax deadlines approach. Personally, I much prefer paper filing which gives you bags of time!

You could put your loss in either boxes 33 or 34 or perhaps you need to split the loss between the two. It all depends upon your employment income. You should try to reduce this to as close to your Personal Allowance (PA) as possible by utilising losses. Any losses not so used can be carried forward. Remember that your PA is a 'use it or loose it' allowance [HMRC speak] so be careful to use it to its fullest effect and not to waste any.

Please be so kind as to rate me before you leave the Just Answer site.

Customer: replied 2 years ago.

Sorry, i still don't fully understand - can i choose which box to put the loss in or choose how much of the loss i put in each box ? If my total income was £19775 and i paid £2163 by PAYE, then went self employed and paid out £6392, (filed £5100 under AIA), and had no income from self employed which box would be best to put that figure in to maximise the amount of money if any i could claim back asap of the inland revenue because at minute i'm also paying 20% under cis scheme this year, which is strangling cash which is needed ? regards Jonathan.

Expert:  bigduckontax replied 2 years ago.
Clearly in your circumstances Box 33 is the right place to put your loss.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3384
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions