Self employment tax return help please!

Bekahlina

“
Hello - sorry, not sure how to do this forum thing, so I'm asking my question here - apologies if this is the wrong place - not sure how to just ask a question that isn't a reply to someone else... Anyway, a relative of mine is a pensioner - they receive both a state and private pension to live on. Upon which they pay tax. They also run a self employed business, which made a loss this year. Shouldn't the loss count agains their income - and therefore they should be able to reclaim the tax they have paid on their pension? Also, whatever tax was paid on their state pension, doesn't seem to be shown (the amount of pension is automatically filled in on the form). Does this mean that no-one is entitled to claim back that tax either? They earned around £7000 state pension £10000 private pension. Their self employed business earned them around £6,300, and their losses were over £13,000. They paid around £1300 on their private pension. Cheers v much in advance - all help appreciated

anselld

Have they registered as self-employed?

Are they actually running the self-employed business with a view to making profit in the foreseeable future? (It is difficult to understand a £13k loss on £6.3k turnover and HMRC will take some convincing that it is a commercial viable activity)


If so then yes, losses can be offset against other income.

CLAPTON

if they are self employed then they must inform HMRC

if they started after 6 th April 2016 then they don't need to file a return until Jan 2018 : if they started before 6th April 2016 then they need to file by 31st Jan 2017 ..

kinger101

What were their losses? Are they sure there isn't any capital expenditure in there? Or stock? Is this back of fag packet stuff or has an accountant gone through it?