Self assessment / tax return

elements19

Hi, I have a fairly new business and just need some advice on my tax return please.

I have calculated that my gross income for the year ending April 2012 was £9496, which means I am £1391 above the personal allowance threshold of £8105. I think my actual outgoing expenses will be more than the £1391, especially as I purchased a laptop this year, which will obviously mean I won't have any tax to pay.

My question is, could I 'save' some of these expenses for next year's tax return, when my earnings may be higher. For example, could I delay my 'claim' for the laptop expense until next year when it might actually make a difference?

Any help and advice appreciated
R

CTA_2

elements19 wrote: »

Hi, I have a fairly new business and just need some advice on my tax return please.

I have calculated that my gross income for the year ending April 2012 was £9496, which means I am £1391 above the personal allowance threshold of £8105. I think my actual outgoing expenses will be more than the £1391, especially as I purchased a laptop this year, which will obviously mean I won't have any tax to pay.

My question is, could I 'save' some of these expenses for next year's tax return, when my earnings may be higher. For example, could I delay my 'claim' for the laptop expense until next year when it might actually make a difference?

Any help and advice appreciated
R

You can carry forward a trading loss to the next period. Indeed, for a new trading business you can carry that loss back to set against taxable income in the previous tax year and generate a small tax repayment (provided you have sufficient income over the personal allowance in that tax year).

The laptop expense will be available, but only via the annual investment allowance (Capital Allowance) regime as opposed to being a "business expense".

elements19

CTA wrote: »

You can carry forward a trading loss to the next period. Indeed, for a new trading business you can carry that loss back to set against taxable income in the previous tax year and generate a small tax repayment (provided you have sufficient income over the personal allowance in that tax year).

The laptop expense will be available, but only via the annual investment allowance (Capital Allowance) regime as opposed to being a "business expense".

Thanks for your reply. The thing is I haven't actually made a loss - I just haven't made enough profit to pay tax. So, say if after expenses my income for the year is £7000 can I add the other £1105 tax free allowance on to the following year, or do anything to carry my expenses over to off set them against the next tax year and pay less tax then?

ceeforcat

elements19 wrote: »

Thanks for your reply. The thing is I haven't actually made a loss - I just haven't made enough profit to pay tax. So, say if after expenses my income for the year is £7000 can I add the other £1105 tax free allowance on to the following year, or do anything to carry my expenses over to off set them against the next tax year and pay less tax then?

You cannot carry forward Personal Allowances. The best I can think of is if you do not claim the AIA on the laptop and make no other Capital allowances claim. You would only be able to claim the annual writing down allowance against that expenditure in future years though.

CTA_2

elements19 wrote: »

Thanks for your reply. The thing is I haven't actually made a loss - I just haven't made enough profit to pay tax. So, say if after expenses my income for the year is £7000 can I add the other £1105 tax free allowance on to the following year, or do anything to carry my expenses over to off set them against the next tax year and pay less tax then?

What you can do is disclaim the capital allowances for the year, but then you would forgo the Annual Investment Allowance and instead claim relief through the writing down allowance. This means relief is significantly slower but it may work out as more tax efficient if you can forecast taxable profit over the personal allowance limit in future periods.

Number crunching time!

elements19

Thank you very much for your replies - that's very useful.

ceeforcat

CTA wrote: »

What you can do is disclaim the capital allowances for the year, but then you would forgo the Annual Investment Allowance and instead claim relief through the writing down allowance. This means relief is significantly slower but it may work out as more tax efficient if you can forecast taxable profit over the personal allowance limit in future periods.

Number crunching time!

I am struggling to see how this is in any way diffrent from my own post, previous to yours - Ah Well!!!