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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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During the last tax year I was employed by a company and I

Customer Question

During the last tax year I was employed by a company and I was self employed in my own business.
I made a loss on my self employed business.
How to I offset that loss against my income from the company I worked for where I was PAYE.
At the moment on my self assessment I cannot see box or tick box to say to offset this loss against other income.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Sorry if my questions wasn't clear, basically I'm filling in my self assessment and need to know how to offset my self employed income loss against my PAYE income from an employer.
Expert:  TonyTax replied 1 year ago.
Hi. Look here for the short self-employment pages or here for the full self-employment pages. You will need the loss to end up in box 33 of the short pages or box 78 of the full pages. I realise that you are probably completing the tax return using the HMRC online service but there will be a box there to put the loss into so that it is offset against your PAYE income. If you have made a loss, the option to offset will come up. You just have to follow the section through slowly. I use the HMRC software for my own return, though not for clients' tax returns. I hope this helps but let me know if you have any further pages.
Customer: replied 1 year ago.
Yes I am completing it online. Do I have to say say yes to the box that says I made an income loss and then enter that loss into one of the boxes that then comes up once you've said yes to that option?
Expert:  TonyTax replied 1 year ago.
Yes.
Customer: replied 1 year ago.
If I say yes to the "Have you made any income tax losses in the year 2014-15?" I get the following options, none of which allow me to enter a loss figure for my self employment in order to offset against my PAYE employment.Earlier years' losses (which can be set against certain other income in 2014-15):
Unused losses carried forward:
Relief now for 2015-16 trade losses or certain capital losses:
Please specify the source of loss in the question above:
Enter the amount of relief for 2015-16 trade losses or certain capital losses which is not subject to the limit on Income Tax reliefs
Expert:  TonyTax replied 1 year ago.
Trade losses.
Customer: replied 1 year ago.
Brill thank you. This has solved it!
Expert:  TonyTax replied 1 year ago.
Excellent.
Expert:  TonyTax replied 1 year ago.
You should see the effect in the tax calculation.
TonyTax and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Yes, it is now showing that the tax I paid via my employer is now due to be paid back to me! Thanks again.
Expert:  TonyTax replied 1 year ago.
The loss claim is all or nothing. You need to make sure you aren't wasting personal allowances by claiming the loss. You do have the option to use it against the previous tax year's income.