New Business tax rebate

paddyalan_2

Tax doesn't have to be taxing, but it is confusing!

I work full time and run a small PA hire business in Swindon. This has just been started in the last week or so.

I have registered with the tax office and as soon as the time comes to do my self assesment I want to be clear.

I have spent quite a lot getting prepared for it, To the sum of about 7K. This money has been spent over the last year or so.

I know that I can claim back expenses and I know this includes capital investment. I expect I will probably be in the red for the sum of about 6K as I don't expect to earn very much in my first year.

How much can I claim for in this case and can I claim back all the money I have spent over the last year.

Thanks for any help
Alan C.

Rafter

You can't claim tax or investment back if you business is loss making. You can however offset past losses against future profits.

So if you make a loss of £6,000 this year and a profit of £6,000 next year you will pay no tax for at least 2 years. You won't get a refund at the end of year 1 though.

Sorry Alan, you can't claim back your investment somehow just because your not making a profit yet.

WHA

If you make a trading loss in the early years of a new business, you can set the loss against other taxable income for the same or earlier years. This means that you can get a tax refund if you have paid tax on, say, employment income, in the same or earlier years. Remember, though it is only for the trading loss, which is not necessarily the same as the investment you have made (i.e. not stock held etc).