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bigduckontax, Accountant
Category: Tax
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i need to file a return for my start up company which as traded

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i need to file a return for my start up company which as traded now for 3 yrs. during this time ive made some revenue but the main activity has been investing to build a website. how do i account for this investment in my P&L? i assume as a depreciation cost. but the form i have from HMRC - abbreviated accounts - doesn't have this line it. the P&L only has interest costs after operating profit. i have additional follow on questions too.
Hello Martin, I'm Keith and happy to help you with your question.

Abbreviated accounts are very basic. Just aggregate the depreciation into the Profit and Loss Total and show the balance of your investment as an asset on the balance sheet.

bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.
Customer: replied 4 years ago.

Hi Keith


id like you to answer these additional questions for me? How do i proceed in terms of paying you etc?



  1. over how many yrs is it reasonable to depreciate a web development investment?

  2. Do i do this in a straight line?

  3. i expect this existing web business to continue trading at a loss, so how do i best prepare the return so that i can carry the loss on the P&L (investment and trading loss) forward with a view to using it to offset against any future taxable income.?

  4. we have added a new somewhat unrelated line of business which is likely to generate a taxable income going fwd. i assume i will be able use my carried fwd tax loss to offset this expected taxable income?


1. Over the number of years of the expected life of the web development investment.

2. I would use a straight line method. Personally I detest the reducing balance method, far too fiddly.

3. If you declare a loss it is carried forward automatically unless you require any other treatment eg carried back one year.

4. Your assumption is correct. All profits within a small company will be allowable against losses.
Customer: replied 4 years ago.

OK thanks


so no issues with tax. No odd restrictions etc. I thought the business needs to be similar etc How similar. It sounds like i as i am a small business i shouldn't worry about it too much??

You are correct in your thoughts. I am sorry I have mad a mistake and mislead you. If the company conducts different types of trade eg hiring out cars and repairing buildings the losses of one activity cannot be set against the profits from the other activity. That is why it is often better to form a new company to avoid this. If you form the companies into a company group then mutual tax gains and losses can be offset, providing the group meets the conditions set out in the s 479, Companies Act, 2006, then the company group escapes compulsory audit. You have to have a turnover in excess of some 6M and balance sheet totals of some 3.5M to loose exemption under this section.

Deep apologies for misleading you in my original answer.
Customer: replied 4 years ago.

Hi Keith


thanks for the update.

So I'd like to get into more detail on this and get this sorted the way you outlined.

Can we achieve this on this forum? Would you be interested in advising me in more detail? Can you provide a quote?



I am very sorry, but Just Answer rules do not allow me to offer myself out for hire outside the Q & A site. All you have to do is to amalgamate your company's figures to fit the limited parameters in the HMRC tax return web site.