Using income from one year to previous tax year

adidas

In regards to self employment, if you are under the personal allowance tax threshold this year - but likely to be over it next year.

Can you carry back some of your income to a prior tax year to use up your personal allowance (when you weren't paying tax in the previous year)?

Is there any specific guidance about this?

[Deleted User]

Under no circumstances whatsoever.

TadleyBaggie

Income has to be declared in the tax year it was received.

Cook_County

TadleyBaggie wrote: »

Income has to be declared in the tax year it was received.

Not necessarily. State pension is taxed on an accruals method. self-employment & rental income can be calculated on an accruals method. It is possible occasionally for the self-employed to change accounting periods to use personal allowances and tax rates more efficiently.

MDMD

Cook_County wrote: »

Not necessarily. State pension is taxed on an accruals method. self-employment & rental income can be calculated on an accruals method. It is possible occasionally for the self-employed to change accounting periods to use personal allowances and tax rates more efficiently.

Although you need a commercial reason to change accounting periods, not just for tax reasons

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim81050