Offset tax rebate

corncob82

This May sound like a silly question but I started a small photography business in 2012, I am also in full time employment. I made a loss in 2012/13 tax year and chose to offset it against my main paye income. I am due a refund, however should this go into my personal pot or my small business pot?

Thanks in advance

Aquamania

corncob82 wrote: »

This May sound like a silly question but I started a small photography business in 2012, I am also in full time employment. I made a loss in 2012/13 tax year and chose to offset it against my main paye income. I am due a refund, however should this go into my personal pot or my small business pot?

Thanks in advance

You cannot offset business losses against the PAYE you pay being employed elsewhere.

I would suggest you see an accountant.

corncob82

I did and the accountant suggested that I offset it against my paye

Aquamania

corncob82 wrote: »

I did and the accountant suggested that I offset it against my paye

In which case, I suggest you see a reputable accountant :cool:

corncob82

It was also a reputable accountant. I have also checked the hmrc website which confirms that you can

corncob82

Here's the link to the HMRC site where it states that you can offset a loss in your self employed income against other income (that would be my full time job) http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/manuals/bimmanual/BIM75450.htm

zygurat789

corncob82 wrote: »

This May sound like a silly question but I started a small photography business in 2012, I am also in full time employment. I made a loss in 2012/13 tax year and chose to offset it against my main paye income. I am due a refund, however should this go into my personal pot or my small business pot?

Thanks in advance

#

One of an accountants 0specialities is knowing how and where to claim losses, this is perfectly legal and obviosly beneficial.
It's your money so you decide what to do with it.

martindow

corncob82 wrote: »

Here's the link to the HMRC site where it states that you can offset a loss in your self employed income against other income (that would be my full time job) http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/manuals/bimmanual/BIM75450.htm

Are you sure? This looks like examples of carrying losses forward within the business. I can't see any reference to setting it off against PAYE income.

corncob82

We'll I'm sure we'll find out if the tax man declines it, but the accountant has put her name to it, she's from an established company and I have faith in her. So thank you for the replies but I was only really seeking advice on what to do with the rebate :-)

martindow

Can you come back later to let us know the outcome?

zygurat789

Does this help

http://www.hmrc.gov.uk/agents/toolkits/income-tax-losses.pdf