Winding down a Small Business
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veloo
Posts: 105 Forumite
I had a small business, which I have wound up after running losses. I haven't closed the limited company yet. Meanwhile, I have become employed and earn a regular salary.
My query is about the loss making limited company, which I have had to fund out of my own pocket. If I close it down, can I claim the tax offset these losses against my regular employment income?
Or is there a better way to go about it?
Thanks, in advance!
My query is about the loss making limited company, which I have had to fund out of my own pocket. If I close it down, can I claim the tax offset these losses against my regular employment income?
Or is there a better way to go about it?
Thanks, in advance!
Look after your pennies, and your pounds will look after themselves!
0
Comments
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No, the payments were made to a limited company which is a separate person to you. If you had been a sole trader, you could have claimed loss relief.£705,000 raised by client groups in the past 18 mths :beer:0
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Not stricly speaking true. Depending on your circumstances you may be able to claim relief against income or more likely capital gains.
You can claim for the cost of the shares when you started under a relief termed as "worthless shares", now it may be that you only set up nominal capital of £100 so no use but if you subscribed your shares locking in your start up capital then this will be useful. There are conditions but most small trading companies will qualify.
Secondly you can claim (almost certainly only against CGT) for any loan you have made are in your case still increasing, once it is considered irretrievable.
If you are talking a reasonable sum then a discussion on how to make the claims with an accountant (tbh I would recommend a CTA, this isnt usual fayre). Otherwise you could try asking HMRC on how to make them. Depends on the tax at stake and how willing you are to pay for the advice0
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