Advice self employed loss

shegirl

leveller2911 wrote: »

Why do people consistently say on here that "businesses make a loss in the first year"?. I've been in business for over 20 years and not one person I know who set up their own business in that time made a loss in the first year.. Why are people so negative.

No loss for me either. I agree some businesses will make a loss in their first year but, in the honest ones, I'd put that down to having very high outgoings

leveller2911

tomtontom wrote: »

Not everyone tries to play the system densol - and let's not confuse savvy with downright immoral

Spot on post.....As Shegirl says Unless there is a high investment/outgoings in the first year there's no reason to make a loss and for people to mention making a loss before they even start has to make you wonder why.

densol_2

leveller2911 wrote: »

Spot on post.....As Shegirl says Unless there is a high investment/outgoings in the first year there's no reason to make a loss and for people to mention making a loss before they even start has to make you wonder why.

Exactly !! High investment ! Often new start businesses require the applicants OWN MONEY THAT WAS EARNED AFTER TAX AND NI PAID to invest in business to start up the business. Nothing immoral or wrong in that and is recognised by HMRC as a proper and correct tax benefit - unlike the prats on this site - most of whom are on here ALL day so clearly not working themselves !

shegirl

densol wrote: »

Exactly !! High investment ! Often new start businesses require the applicants OWN MONEY THAT WAS EARNED AFTER TAX AND NI PAID to invest in business to start up the business. Nothing immoral or wrong in that and is recognised by HMRC as a proper and correct tax benefit - unlike the prats on this site - most of whom are on here ALL day so clearly not working themselves !

But not all businesses have or even require high start up costs (some are purely choice) and there are so many set up these days that are not set to see profit soon or even later, to a reasonable extent

Supermom

In my sisters case it is very much a case of high start up costs and which obviously and legally will be offset against any profits. She has been scrimping and saving like mad to get it off the ground, business grants are few and far between and a lot are focused on the younger generation.

The reason I mentioned the loss as this is what the business advisor who went through her business plan said was likely the case and looking at the set up costs it is easy to see why this would be the case.

Not everyone is looking for a loop hole on how to 'get what they can' my sister has always worked and is determined to not have to claim anything asap. She never did before and it's only due to personal circumstance that in the last few years she's had too. It was difficult to swallow her pride and do so but it was either that or her children would have starved. She paid into the 'system' for many years as did our parents and this is the only time any of us have had to take something back.