Deducting personal allowance from Self Assessment and it goes negative.

AromaS

Hello quick question.

I am trying to work out if I am in a loss or simply paying £0 tax.

If i was to deduct my full personal allowance from my SA profits it will take me into a loss by around £1000. Is it possible to create a loss by deducting my PA or does it simply stop at £0?

Thanks

Tammykitty

It stops at zero.


However if you are married, you can transfer some of your personal allowance (10%) to your spouse to reduce their tax bill.


A loss, is when the business actually makes a loss (Ie Income £5k, expenses £6k - loss £1k)

AromaS

Ok thanks, that was my line of thinking but Im glad its been cleared up. Cheers